Why Michael Saylor ‘won’t back down’ as $8 billion of MSTR is at risk

Key Takeaways

The place will the $8 billion strain come from?

From funds with MSTR positions by way of the MSCI, and if different indexes observe go well with.

What’s Saylor’s response?

He stated Technique is an working firm with a $500 million software program enterprise and lively capital elevating growth plans.

Michael Saylor’s (Nasdaq: MSTR) technique might stay muted till the MSCI scores report in mid-January 2026.

That is reported by the funding financial institution and inventory alternate firm TD CowenMSTR inventory might face promoting strain of about $8 billion if MSCI have been to take away it from the index. In a report the corporate says:

“We consider that ~$2.5 billion of worth will be attributed to MSTR holdings inside MSCI indexes, whereas one other ~$5.5 billion is in different indexes that might theoretically observe MSCI’s lead.”

The MSCI evaluate, which turned public final week, was shared internally for the primary time on October 10.

In accordance with the worldwide index, public Bitcoin treasury firms, equivalent to Technique, are passive and behave like funding funds; due to this fact they shouldn’t be talked about. Solely working firms are included within the index.

However TD Cowen argued that Technique was an working firm with a $500 million software program enterprise, regardless of accounting for a small portion of the corporate’s whole worth. The corporate added:

“Technique is clearly not an funding fund. So we ponder whether MSCI may merely be expressing a bias in opposition to Bitcoin.”

Saylor’s response to MSCI

Final week, Technique founder Michael Saylor additionally discredited the deliberate index exclusion added,

“Technique just isn’t a fund, a belief or a holding firm. Funds and trusts passively maintain belongings. No passive automobile or holding firm might do what we do.”

He joked that the “index ranking doesn’t outline the technique” and reiterated their long-term perception in BTC.

In separate social media posts, Saylor added that he won’t “again down,” stressing that increased $21 billion by 2025 alone.

Supply:

It appeared like a refined joke to be labeled a ‘passive firm’. Passive firms hardly ever elevate capital as a result of they haven’t any actions that require growth.

Elevating $21 billion meant that Technique is by definition an working firm that meets the itemizing necessities of the MSCI index.

It stays to be seen whether or not MSCI will withdraw or proceed with the delisting of MSTR early subsequent yr.

In the meantime, Bitcoin [BTC] held above $80,000 and even tried to recuperate $90,000 on November 24. MSTR followed continued and rose 5% to $179.