🔥 PRESSURE ON THE INDEX STRUCTURE IS HEAVILY WEIGHING ON MICROSTRATEGY
MicroStrategy is facing a structural risk: MSCI is considering tightening criteria for companies with a Bitcoin weighting exceeding 50% of assets. With a BTC portfolio larger than the software business scale, MSTR becomes a clear candidate on the list that could be removed from the index.
If this scenario occurs, MSCI-following ETFs and passive funds will be forced to sell MSTR—creating a forced supply that JPMorgan estimates to be at least $2.8 billion, and could exceed $8.8 billion if other index providers apply similar standards. This could increase price volatility and make MicroStrategy's capital raising costs less favorable.
Michael Saylor responded firmly: MicroStrategy does not operate as a passive Bitcoin fund but as a business implementing a financial strategy based on BTC. The company has issued various debt instruments collateralized by Bitcoin such as STRK, STRF, STRD, STRC, STRE, while also launching a new credit product Stretch, which he claims "no ETF can do."
