Mi Ge wants to make one thing clear: MSCI’s move isn’t targeting Bitcoin—it’s hitting Strategy’s lifeline for raising capital.
The decision will be announced on November 12 and take effect after market close on November 30. JPMorgan estimates that passive funds may have to sell up to $2.8 billion worth of MSTR. Strategy itself acknowledged in its quarterly report that it expects to be removed from the MSCI Global Index. As of November 8, the company still held 850,364 BTC, purchased at a cost of $64.16 billion. It’s the stock that’s being sold, not the coins.
The real blow is likely to come from the premium. MSTR has long relied on issuing shares and debt to raise money to buy Bitcoin. If index funds pull out, fewer investors will be willing to buy in at a high premium, and the pace of future Bitcoin purchases will probably slow. MSTR is already down more than 1% today—the market has delivered an early warning.
Mi Ge’s view: First, watch the list on November 12. Once the bad news is confirmed, the market may actually breathe a sigh of relief. Even if MSTR is removed, don’t rush to buy the dip—wait until the passive selling has run its course before November 30.
Do you think Strategy’s removal from the index is a problem specific to MSTR, or are index rules simply incompatible with companies that hoard Bitcoin?
#Strategy或遭MSCI剔除，面临最高28亿美元卖盘
The decision will be announced on November 12 and take effect after market close on November 30. JPMorgan estimates that passive funds may have to sell up to $2.8 billion worth of MSTR. Strategy itself acknowledged in its quarterly report that it expects to be removed from the MSCI Global Index. As of November 8, the company still held 850,364 BTC, purchased at a cost of $64.16 billion. It’s the stock that’s being sold, not the coins.
The real blow is likely to come from the premium. MSTR has long relied on issuing shares and debt to raise money to buy Bitcoin. If index funds pull out, fewer investors will be willing to buy in at a high premium, and the pace of future Bitcoin purchases will probably slow. MSTR is already down more than 1% today—the market has delivered an early warning.
Mi Ge’s view: First, watch the list on November 12. Once the bad news is confirmed, the market may actually breathe a sigh of relief. Even if MSTR is removed, don’t rush to buy the dip—wait until the passive selling has run its course before November 30.
Do you think Strategy’s removal from the index is a problem specific to MSTR, or are index rules simply incompatible with companies that hoard Bitcoin?
#Strategy或遭MSCI剔除，面临最高28亿美元卖盘