MSCI has included the decision in its November index review: Strategy, Metaplanet and other Bitcoin treasury companies will be removed, effective after the close on November 30.
The reason for the removal isn’t that “the company lost money,” but that the index increasingly views companies that hoard Bitcoin as “non-operating companies.” Passive funds would sell shares, not spot $BTC —there’s no forced selling of coins. But the funding channel will narrow: share prices will come under pressure, making it harder to raise money by issuing shares to buy coins in the future.
Strategy previously said that MSCI-related funds held around 13 million of its shares. JPMorgan had earlier estimated that the removal alone could trigger about $2.8 billion in selling. Reuters cited the same investment bank as saying that if other index providers follow suit, selling pressure could reach as much as $8.8 billion—but that’s still just a hypothetical.
Are you more concerned about passive funds selling shares, or about the path of issuing shares to buy coins becoming narrower?
#StrategyMayBeRemovedByMSCI,FacingUpTo$2.8BillionInSelling #CPIAboveExpectations,StocksAndBTCUnderRenewedPressure $BTC
The reason for the removal isn’t that “the company lost money,” but that the index increasingly views companies that hoard Bitcoin as “non-operating companies.” Passive funds would sell shares, not spot $BTC —there’s no forced selling of coins. But the funding channel will narrow: share prices will come under pressure, making it harder to raise money by issuing shares to buy coins in the future.
Strategy previously said that MSCI-related funds held around 13 million of its shares. JPMorgan had earlier estimated that the removal alone could trigger about $2.8 billion in selling. Reuters cited the same investment bank as saying that if other index providers follow suit, selling pressure could reach as much as $8.8 billion—but that’s still just a hypothetical.
Are you more concerned about passive funds selling shares, or about the path of issuing shares to buy coins becoming narrower?
#StrategyMayBeRemovedByMSCI,FacingUpTo$2.8BillionInSelling #CPIAboveExpectations,StocksAndBTCUnderRenewedPressure $BTC