MSCI Removes Three DAT Treasury Companies, Putting the Buy-Crypto-with-Financing Model Under Pressure
MSCI has removed three crypto treasury companies from its indexes.
According to Odaily Planet Daily, in its November review, MSCI removed Strategy (from the MSCI USA Index), Metaplanet (from the MSCI Japan Small Cap Index), and Upexi (from the MSCI USA Micro Cap Index). The changes will take effect after the market close on November 30. Funds tracking the GIMI Index hold about 13 million MSTR shares, or 3.1% of its basic share capital, worth approximately $1.57 billion at the November 10 closing price of $121.07. JPMorgan had estimated that the removal could trigger about $2.8 billion in selling; if other index providers follow suit, the figure could reach $8.8 billion. Strategy said the 13 million shares represent only about 60% of its average daily trading volume over the past 30 days, and that it does not consider the impact significant. ETH treasury company SharpLink remains on the watchlist.
Scenario to watch 1: If reduced passive buying narrows the premium, issuing more new shares will be necessary to accumulate the same amount. If the share price falls below net asset value per share, further issuance would dilute existing shareholders even more. Scenario to watch 2: If BTC strengthens and the premium recovers, the pressure from removal may be absorbed; convertible bonds, preferred shares, and over-the-counter funding remain available.
Are you more focused on a recovery in the mNAV premium or the pace of future share issuance announcements?
Image 1: MSCI Removes Three DAT Treasury Companies, Putting the Buy-Crypto-with-Financing Model Under Pressure · Source: news report image
Image source: https://www.odaily.news/zh-CN/post/5213879
MSCI has removed three crypto treasury companies from its indexes.
According to Odaily Planet Daily, in its November review, MSCI removed Strategy (from the MSCI USA Index), Metaplanet (from the MSCI Japan Small Cap Index), and Upexi (from the MSCI USA Micro Cap Index). The changes will take effect after the market close on November 30. Funds tracking the GIMI Index hold about 13 million MSTR shares, or 3.1% of its basic share capital, worth approximately $1.57 billion at the November 10 closing price of $121.07. JPMorgan had estimated that the removal could trigger about $2.8 billion in selling; if other index providers follow suit, the figure could reach $8.8 billion. Strategy said the 13 million shares represent only about 60% of its average daily trading volume over the past 30 days, and that it does not consider the impact significant. ETH treasury company SharpLink remains on the watchlist.
Scenario to watch 1: If reduced passive buying narrows the premium, issuing more new shares will be necessary to accumulate the same amount. If the share price falls below net asset value per share, further issuance would dilute existing shareholders even more. Scenario to watch 2: If BTC strengthens and the premium recovers, the pressure from removal may be absorbed; convertible bonds, preferred shares, and over-the-counter funding remain available.
Are you more focused on a recovery in the mNAV premium or the pace of future share issuance announcements?
Image 1: MSCI Removes Three DAT Treasury Companies, Putting the Buy-Crypto-with-Financing Model Under Pressure · Source: news report image
Image source: https://www.odaily.news/zh-CN/post/5213879
