MSCI is about to decide whether Strategy still counts as a real company or just a giant bitcoin wallet with a stock ticker.
The final list drops today. If $MSTR gets cut from the index, JPMorgan reckons passive funds would have to dump around $2.8 billion of the stock. And that is only the MSCI part, not every index at once.
Here is the twist though. Strategy says index funds only hold about 3.1% of its shares, so the forced selling might be smaller than the headline number. And none of this touches the bitcoin, the funds sell the stock, not the 850,000 $BTC on the balance sheet.
Still, the timing is brutal. Bitcoin is sitting under Strategy's average buy price of around $75,000, and the stock is already down over 70% from its high.
So what do you think, is this the moment MSTR finally breaks away from bitcoin, or does it just drag the stock down with it? #StrategyFaces$2.8BSelloffRiskFromMSCIRemoval #BinancePick
The final list drops today. If $MSTR gets cut from the index, JPMorgan reckons passive funds would have to dump around $2.8 billion of the stock. And that is only the MSCI part, not every index at once.
Here is the twist though. Strategy says index funds only hold about 3.1% of its shares, so the forced selling might be smaller than the headline number. And none of this touches the bitcoin, the funds sell the stock, not the 850,000 $BTC on the balance sheet.
Still, the timing is brutal. Bitcoin is sitting under Strategy's average buy price of around $75,000, and the stock is already down over 70% from its high.
So what do you think, is this the moment MSTR finally breaks away from bitcoin, or does it just drag the stock down with it? #StrategyFaces$2.8BSelloffRiskFromMSCIRemoval #BinancePick
