MSCI is kicking Strategy out of its index, and many people’s first reaction is: Is Saylor going to sell his coins? The answer is no. According to the results of MSCI’s November review, Strategy will be removed from the MSCI Global Standard Indexes, effective after the close on November 30. The funds that track the index will have to sell MSTR shares; Strategy itself does not need to sell $BTC .
The rules were finalized on October 15: companies whose assets are primarily non-operating assets and that meet at least four of five financial criteria are no longer eligible for inclusion. According to Reuters, MSCI considers these companies to be more like investment funds. Also removed in the same round was Tokyo-listed Metaplanet, while Ethereum treasury company SharpLink was placed on the watch list.
How much selling pressure could there be? Earlier estimates put it at around $2.8 billion, but those were based on an earlier proposal. JPMorgan estimated that the figure could reach $8.8 billion if other index providers follow suit. For now, $BTC is trading at around $74,000, up less than 1% in 24 hours. Put simply, the short-term pressure is mainly on the share price. More concerning is the “more like a fund” label, which could follow the entire treasury sector.
Which treasury company do you think will be next in the crosshairs?
See the image for today’s other highlights 👆
⚠️ Not investment advice · DYOR
#MSCI #Strategy #MSTR #CryptoMorningBrief
The rules were finalized on October 15: companies whose assets are primarily non-operating assets and that meet at least four of five financial criteria are no longer eligible for inclusion. According to Reuters, MSCI considers these companies to be more like investment funds. Also removed in the same round was Tokyo-listed Metaplanet, while Ethereum treasury company SharpLink was placed on the watch list.
How much selling pressure could there be? Earlier estimates put it at around $2.8 billion, but those were based on an earlier proposal. JPMorgan estimated that the figure could reach $8.8 billion if other index providers follow suit. For now, $BTC is trading at around $74,000, up less than 1% in 24 hours. Put simply, the short-term pressure is mainly on the share price. More concerning is the “more like a fund” label, which could follow the entire treasury sector.
Which treasury company do you think will be next in the crosshairs?
See the image for today’s other highlights 👆
⚠️ Not investment advice · DYOR
#MSCI #Strategy #MSTR #CryptoMorningBrief
