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Strategy Says MSCI Index Removal Will Have Limited Impact, With Tracking Funds Holding Just 3.1%
Summary
- Strategy said its removal from the MSCI Global Investable Market Indexes (GIMI) will have only a limited impact on the company.
- It said funds tracking the index hold just 3.1% of its outstanding common shares, or about 13 million shares, meaning the market can absorb any related selling.
- Strategy said MSCI's criteria for excluding digital-asset treasury companies from its indexes were arbitrary and discriminatory.
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Strategy, the world's largest corporate holder of Bitcoin, said MSCI's decision to remove the company from its global indexes will have only a limited impact.
In a statement posted on its website on Nov. 12, Strategy said funds tracking the MSCI Global Investable Market Indexes, or GIMI, hold just 3.1% of its outstanding common shares. The company argued the exclusion would therefore have a limited effect.
Funds tracking MSCI indexes hold about 13 million Strategy shares, equal to roughly 60% of the stock's average daily trading volume over the past 30 days. Strategy said that means the market can absorb any selling related to the index removal.
Strategy also criticized MSCI's exclusion criteria as a discriminatory measure aimed at digital-asset treasury companies. In comments submitted to MSCI in August, the company said the proposal was arbitrary and discriminatory and undermined the neutrality and credibility of an index provider.
On Nov. 11, MSCI classified Strategy and some other companies as "non-operating companies" similar to investment funds and decided to remove them from major global indexes starting Dec. 1.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.