WHAT’S HAPPENING WITH MICROSTRATEGY (MSTR)?
🔸 MSCI is reviewing whether to exclude companies whose Bitcoin holdings account for 50% or more of their total assets.
🔸 MicroStrategy falls into this category, as the value of its Bitcoin reserves now exceeds its traditional operating assets.
🔸 If removed from MSCI indexes, funds that track these indexes may be required to sell MSTR shares.
🔸 JPMorgan estimates that automatic outflows could reach $2.8B, and potentially up to $8.8B if other index providers implement similar rules.
🔸 This scenario could put downward pressure on the stock and make future capital raising more challenging for the company.
$ZEN $BNB
MICHAEL SAYLOR’S RESPONSE: “MICROSTRATEGY IS NOT A BITCOIN FUND.”
🔸 Saylor emphasized that MicroStrategy is not an ETF or a passive Bitcoin vehicle; it remains a software company with a Bitcoin-based financial strategy.
🔸 This year, MicroStrategy issued five types of Bitcoin-backed securities and debt instruments: $STRK, $STRF, $STRD, $STRC, and $STRE.
🔸 The company also launched Stretch ($STRC) — a Bitcoin-secured credit product with monthly interest payments in USD.
🔸 Saylor noted that no passive fund would be able to offer this type of financial structure.
