Strategy Faces MSCI Index Decision on Nov. 12; Exit Could Trigger $2.8 Billion in Selling
Summary
- MSCI said it will announce on Nov. 12 whether Strategy will be removed from the MSCI indexes.
- JPMorgan said Strategy could face $2.8 billion in selling if it is excluded from the MSCI indexes.
- Heavy selling could disrupt its strategy of buying Bitcoin through stock issuance.
Forecast Trend Report by Period
Strategy, the world's largest corporate holder of Bitcoin, will learn on Nov. 12 whether it will remain in MSCI indexes.
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 Standard Time on Nov. 12. The changes will take effect on Nov. 30.
Markets are watching whether Strategy will be removed from the MSCI indexes. JPMorgan estimates that exclusion could trigger about $2.8 billion of selling by funds that track MSCI benchmarks. Such a selloff could disrupt Strategy's plan to buy 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 shares have been under pressure. The stock 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 the MSCI indexes may already have been partly priced in.
