MSTR closed Friday at $136.83, down nearly 10%; Bitcoin fell about 1% over the same period. Although both are influenced by Bitcoin, they did not move in sync this time.
Market discussion focused on the risk to MSTR’s own index eligibility, rather than spot Bitcoin selling. Reports say MSCI’s new screening rules could put Strategy on the list of companies to be excluded; if ultimately implemented, index-tracking funds would need to adjust their MSTR stock positions, which does not mean the company would have to sell its Bitcoin.
The closing price and decline are corroborated by multiple public discussions, but the exclusion list has not yet been announced, and estimates of potential passive selling vary. The next things to watch are the final list, actual index holdings, and whether pressure on the share price affects Strategy’s ability to continue raising funds to buy Bitcoin. Will this divergence end with a reassessment prompted by a rules change, or mark the beginning of a shift in how Bitcoin treasury companies are valued?
Market discussion focused on the risk to MSTR’s own index eligibility, rather than spot Bitcoin selling. Reports say MSCI’s new screening rules could put Strategy on the list of companies to be excluded; if ultimately implemented, index-tracking funds would need to adjust their MSTR stock positions, which does not mean the company would have to sell its Bitcoin.
The closing price and decline are corroborated by multiple public discussions, but the exclusion list has not yet been announced, and estimates of potential passive selling vary. The next things to watch are the final list, actual index holdings, and whether pressure on the share price affects Strategy’s ability to continue raising funds to buy Bitcoin. Will this divergence end with a reassessment prompted by a rules change, or mark the beginning of a shift in how Bitcoin treasury companies are valued?