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Analysis: MSCI's 'Hidden Clause' May Cut off Strategy's Incremental Funding Flow
Summary: Global stock and ETF market benchmark provider MSCI has announced that it will temporarily not remove the Bitcoin treasury company Strategy, but a hidden clause stating 'MSCI will not implement any increases to the Number of Shares (NOS)' has raised concerns in the community. This clause means that shares issued by Strategy through ATM will ...
Global stock and ETF market benchmark provider MSCI has announced that it will temporarily not remove the Bitcoin treasury company Strategy, but a hidden clause stating 'MSCI will not implement any increases to the Number of Shares (NOS)' has raised concerns in the community. This clause means that shares issued by Strategy through ATM will not be included in MSCI indexes, nor trigger passive fund buying. This indicates MSCI acknowledges the existence of cryptocurrency treasury stocks but refuses to continue providing passive funding for ATM issuance. Even if Strategy issues more shares, passive funds will not follow suit, cutting off incremental funding. Besides Strategy, potential affected Bitcoin treasury companies include Metaplanet and Capital B. (CryptoSlate)
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Link: Analysis: MSCI's 'Hidden Clause' May Cut off Strategy's Incremental Funding Flow [Copy]
