Strategy may get kicked out by an index provider this time. Passive funds that track the index would have to sell about $2.8 billion worth of its stock. If other index providers follow suit, that could reach as much as $8.8 billion.
What does $2.8 billion mean? It spent just $81.9 million buying Bitcoin last week. This one sale would be equivalent to 34 weeks of that.
But its own third-quarter report already said it expected to be removed in November. This didn’t come out of nowhere, and some of it is probably already priced into the stock.
What’s being sold is stock, not Bitcoin. The rules don’t force anyone to sell BTC. What I’m really worried about is that if its share price falls further, it’ll be harder for the company to raise money by issuing shares to buy Bitcoin in the future. That’s the real impact on BTC.
The index provider’s reasoning—that it just sits on Bitcoin and doesn’t do any work—is pretty harsh.
The decision comes out at 6 a.m. Beijing time tomorrow and takes effect after the market closes at the end of the month. BTC is at 73735 right now. I won’t change my mind until it gets back above 75535. #Strategy或遭MSCI剔除面临最高28亿美元卖盘
What does $2.8 billion mean? It spent just $81.9 million buying Bitcoin last week. This one sale would be equivalent to 34 weeks of that.
But its own third-quarter report already said it expected to be removed in November. This didn’t come out of nowhere, and some of it is probably already priced into the stock.
What’s being sold is stock, not Bitcoin. The rules don’t force anyone to sell BTC. What I’m really worried about is that if its share price falls further, it’ll be harder for the company to raise money by issuing shares to buy Bitcoin in the future. That’s the real impact on BTC.
The index provider’s reasoning—that it just sits on Bitcoin and doesn’t do any work—is pretty harsh.
The decision comes out at 6 a.m. Beijing time tomorrow and takes effect after the market closes at the end of the month. BTC is at 73735 right now. I won’t change my mind until it gets back above 75535. #Strategy或遭MSCI剔除面临最高28亿美元卖盘
