MSCI publishes the list of companies affected by its new non-operating company rule on 11 November, and $MSTR is the name most people will be looking for on it. The rule makes companies without substantial operating assets ineligible for its Global Investable Market Indexes, and it takes effect after the close on 30 November.
I still think most of the forced-selling talk is fud... the big outflow estimates going around were built for the old proposal to exclude anything holding 50% or more of its assets in digital assets, and MSCI replaced that with this broader framework. Nothing's automatic either. A constituent only comes out if it fails the screen in each of its last two annual filings.
And if index money does have to leave, the funds sell the Strategy shares they hold, which doesn't make Strategy sell any Bitcoin. I'd treat the stock's index risk and Bitcoin's price as two separate questions.
I'm watching whether Strategy shows up on the 11 November list and how $MSTR trades into the 30th.
#MSTR #Bitcoin #MSCI #Crypto
I still think most of the forced-selling talk is fud... the big outflow estimates going around were built for the old proposal to exclude anything holding 50% or more of its assets in digital assets, and MSCI replaced that with this broader framework. Nothing's automatic either. A constituent only comes out if it fails the screen in each of its last two annual filings.
And if index money does have to leave, the funds sell the Strategy shares they hold, which doesn't make Strategy sell any Bitcoin. I'd treat the stock's index risk and Bitcoin's price as two separate questions.
I'm watching whether Strategy shows up on the 11 November list and how $MSTR trades into the 30th.
#MSTR #Bitcoin #MSCI #Crypto