Strategy Faces Nov. 12 MSCI Index Decision; Removal Could Spur $2.8 Billion in Selling
Summary
- MSCI said it will announce on the morning of Nov. 12 whether Strategy will remain in the MSCI indexes.
- JPMorgan said Strategy’s removal from the MSCI indexes could trigger about $2.8 billion in selling by MSCI-tracking funds.
- Kaleo said the possibility of Strategy’s MSCI removal may have been partly priced into the recent decline in its share price.
Forecast Trend Report by Period
The fate of Strategy, the world’s largest corporate holder of Bitcoin, in MSCI indexes will be decided on Nov. 12.
Bitcoin.com News and other outlets reported on Nov. 11 that MSCI will announce the results of its November index review at about 7 a.m. Korea time on Nov. 12. The changes will take effect on Nov. 30.
Investors are focused on whether Strategy will be removed from the MSCI indexes. JPMorgan estimated that exclusion could trigger $2.8 billion of selling by funds that track MSCI benchmarks. Such selling could complicate Strategy’s approach of buying Bitcoin through stock issuance.
Strategy said in August that funds tracking MSCI indexes held about 13 million of its shares. That was equal to about 3.1% of its basic shares outstanding at the time.
Strategy’s stock has been under pressure. The shares fell from around $145 in late October to about $121 at the close on Nov. 10. Crypto trader Kaleo said the possibility of Strategy’s removal from MSCI indexes may already have been partly reflected in the recent decline.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul