$BTC 🚨Official news: MSCI is removing Michael Saylor’s Strategy from its global indexes.
According to MSCI, the removal will take effect at market close on November 30.
Is this the most bearish signal for Bitcoin?!
Strategy doesn’t need to sell its Bitcoin, but it will have to sell $MSTR shares before November 30.
JPMorgan says the sell-off could reach $2.8 billion, and could increase by another $8.8 billion if other major stock indexes follow suit.
The stock has already fallen from $145 to $120 in just two weeks, a decline of about 17%.
This matters for Bitcoin because Strategy buys BTC by selling its own shares to investors.
The lower the MSTR price, the less money it raises for every share it sells.
And it could get worse.
Investors have been willing to pay a premium for MSTR, valuing it above the Bitcoin it holds.
This “premium” is what allows Strategy to issue new shares and turn the cash into more BTC.
Once MSTR’s market cap equals the value of its Bitcoin holdings, issuing new shares to buy more BTC no longer makes sense.
And if Strategy still needs cash to pay its bills, the next thing it can sell is its own Bitcoin.
From “never sell” to “need to sell.” $BTC 🤐🥶
According to MSCI, the removal will take effect at market close on November 30.
Is this the most bearish signal for Bitcoin?!
Strategy doesn’t need to sell its Bitcoin, but it will have to sell $MSTR shares before November 30.
JPMorgan says the sell-off could reach $2.8 billion, and could increase by another $8.8 billion if other major stock indexes follow suit.
The stock has already fallen from $145 to $120 in just two weeks, a decline of about 17%.
This matters for Bitcoin because Strategy buys BTC by selling its own shares to investors.
The lower the MSTR price, the less money it raises for every share it sells.
And it could get worse.
Investors have been willing to pay a premium for MSTR, valuing it above the Bitcoin it holds.
This “premium” is what allows Strategy to issue new shares and turn the cash into more BTC.
Once MSTR’s market cap equals the value of its Bitcoin holdings, issuing new shares to buy more BTC no longer makes sense.
And if Strategy still needs cash to pay its bills, the next thing it can sell is its own Bitcoin.
From “never sell” to “need to sell.” $BTC 🤐🥶
