MSCI just dropped Strategy from its USA Index. The scary reading: forced $BTC selling.
The filings say otherwise. Deletion takes effect at the Nov. 30 close, and funds tracking MSCI must sell the stock. Nothing in MSCI's rules forces Strategy to sell a single bitcoin (Bitcoin Magazine).
Where the pressure lands is the shares. Strategy says MSCI-tracking funds hold 3.1% of its basic shares. The older JPMorgan estimate of up to $2.8B in outflows was built on MSCI's earlier proposal, not this screen.
My take: the real thing to watch is the premium Strategy uses to fund purchases by selling stock. It holds 850,364 BTC at an average cost of $75,456, and spot is around $73.6K. A weaker share price makes new buying harder.
Does an index delisting matter for bitcoin, or only for the stock?
#Strategy #MSCI #Bitcoin
Disclosure: I can earn Binance Write to Earn rewards from this post.
The filings say otherwise. Deletion takes effect at the Nov. 30 close, and funds tracking MSCI must sell the stock. Nothing in MSCI's rules forces Strategy to sell a single bitcoin (Bitcoin Magazine).
Where the pressure lands is the shares. Strategy says MSCI-tracking funds hold 3.1% of its basic shares. The older JPMorgan estimate of up to $2.8B in outflows was built on MSCI's earlier proposal, not this screen.
My take: the real thing to watch is the premium Strategy uses to fund purchases by selling stock. It holds 850,364 BTC at an average cost of $75,456, and spot is around $73.6K. A weaker share price makes new buying harder.
Does an index delisting matter for bitcoin, or only for the stock?
#Strategy #MSCI #Bitcoin
Disclosure: I can earn Binance Write to Earn rewards from this post.