Is Strategy's Bitcoin-buying machine about to lose its fuel? ⛽
📰 What happened
MSCI confirmed Nov 11 it will drop Strategy (MSTR) from its indexes at the Nov 30 close, calling it a "non-operating company" under a new rule. JPMorgan estimates ~$2.8B in forced selling from index funds. Meanwhile $BTC at $67,434 sits ~11% below Strategy's $75,456 average cost, putting its 850,364 BTC stack ~$6.85B underwater on paper (CryptoTimes calc, based on the Nov 9 SEC 8-K).
🤔 Why it matters
Strategy buys BTC by selling shares at a premium. That premium has compressed from 3.4x a year ago to about 1.08x (CoinDesk). Removal does NOT force Strategy to sell any BTC, but a thinner premium means thinner fuel for the next buy.
👀 What to watch
Monday's 8-K (Nov 16): did Strategy buy, sell, or pause? And Nov 30: how much of the $2.8B actually exits.
Is MSCI's call the end of the treasury-company trade, or a dip to buy before Monday's filing? 🐂🐻
Not financial advice. DYOR.
#Strategy #Bitcoin #MSCI #crypto
📰 What happened
MSCI confirmed Nov 11 it will drop Strategy (MSTR) from its indexes at the Nov 30 close, calling it a "non-operating company" under a new rule. JPMorgan estimates ~$2.8B in forced selling from index funds. Meanwhile $BTC at $67,434 sits ~11% below Strategy's $75,456 average cost, putting its 850,364 BTC stack ~$6.85B underwater on paper (CryptoTimes calc, based on the Nov 9 SEC 8-K).
🤔 Why it matters
Strategy buys BTC by selling shares at a premium. That premium has compressed from 3.4x a year ago to about 1.08x (CoinDesk). Removal does NOT force Strategy to sell any BTC, but a thinner premium means thinner fuel for the next buy.
👀 What to watch
Monday's 8-K (Nov 16): did Strategy buy, sell, or pause? And Nov 30: how much of the $2.8B actually exits.
Is MSCI's call the end of the treasury-company trade, or a dip to buy before Monday's filing? 🐂🐻
Not financial advice. DYOR.
#Strategy #Bitcoin #MSCI #crypto
