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Michael Saylor Faces a Critical Test as MSCI Weighs Strategy’s Index Future

Strategy (MSTR) is facing a major institutional test as MSCI prepares to release the results of its November index review.

The decision could have serious implications for the Bitcoin treasury company, as a potential removal puts billions of dollars in passive investment outflows at stake.

MSTR Investors on Edge

JPMorgan analysts previously estimated that funds tracking MSCI indices could be forced to sell around $2.8 billion worth of MSTR shares if the stock is excluded. If other major index providers follow the same move, total outflows could reach $8.8 billion.

The index changes are scheduled to take effect at the November 30 close. As reported da Criptopatate earlier, Strategy pushed back against MSCI’s proposal and argued that the rules effectively target digital asset treasury companies under a different name. The company also challenged MSCI’s classification of certain firms as non-operating businesses. It said that the definition has no basis in US GAAP, IFRS, or any recognized legal framework.

Strategy has maintained that its Bitcoin operations qualify as an operating segment under US accounting rules, consistent with its discussions with SEC staff. It also warned that MSCI’s proposal introduces subjective policy decisions into index construction and could undermine the neutrality investors expect from index providers. Strategy has asked MSCI to withdraw the proposal, but the upcoming decision could add another challenge to Michael Saylor’s Bitcoin accumulation strategy.

Impact on BTC

Market commentator ‘KALEO’ believes Strategy could be among the companies removed, but the threat may already be priced in. He said that MSCI finalized its new eligibility rules on October 15. Since then, Bitcoin has steadily declined. Concerns remain about whether Strategy could eventually face cash constraints and be forced to sell some of its BTC holdings to meet financial obligations.

However, the trader believes that scenario is now far less likely than it appeared during the summer. His reasoning is that Strategy has demonstrated a willingness to dilute common shareholders and adjust its financial metrics to raise capital rather than sell Bitcoin. He expects that approach to continue, which will allow the company to fund its obligations while maintaining its BTC holdings.

While KALEO sees the potential MSCI removal as a negative development for MSTR over the longer term, he does not expect it to have much fundamental impact on Bitcoin itself.

Il post Michael Saylor Faces a Critical Test as MSCI Weighs Strategy’s Index Future è apparso per la prima volta su Criptopatate.


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