Strategy faces MSCI’s exit. Does that put its Bitcoin buying at risk?

MSCI’s removal of Strategy from its equity indexes creates a deadline for funds that track those benchmarks and a financing test for the company behind the shares. Strategy uses capital markets to buy Bitcoin and manage its preferred stock obligations. If demand for MSTR weakens, the company may receive less money for each new share it sells, while its choices over cash reserves, buybacks and Bitcoin sales become more consequential. MSCI’s November index review sets November 30 as the closing date for implementation. Strategy’s removal brings an eligibility debate into the portfolios of funds that use the affected benchmarks. Crypto.news’s report on the removal traced the immediate concern to potential sales of MSTR by funds and the possible effect on new fundraising.

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