Strategy, the world's largest corporate holder of bitcoin, could be removed from major MSCI indexes under newly finalized rules. CryptoQuant CEO Ki Young Ju argues the risk is already priced in, while Michael Saylor has dismissed the issue as relatively unimportant to the company.
MSCI finalized new eligibility rules this week that target companies it classifies as "non-operating." Strategy, Metaplanet and other digital-asset treasury firms could face exclusion from the Global Investable Market Indexes, potentially triggering billions of dollars in passive outflows.
Deadlines for the MSCI decision
The final list of affected entities is due on November 11, and the methodology takes effect at the close of November 30. Meanwhile, JPMorgan analysts have previously estimated that removal could lead to approximately $2.8 billion in passive outflows from MSTR.
Ju, however, says investors may be focusing too heavily on that figure. He explained that MSCI is primarily a fund-flow issue already reflected in MSTR's valuation.
Wall Street targets stay high
Ju points to Wall Street firms that still maintain substantially higher price targets. He cited Citigroup at $240, Barclays at $175 and B. Riley at $195, adding that these targets have generally moved higher rather than lower.
He also said Strategy's positioning depends on more important factors. These include a roughly 1x market-cap-to-Bitcoin-NAV ratio, STRC trading close to par, and billions of dollars in reserves to support dividend obligations.
In a post on X, Ju put the reserve figure at $3.75B covering dividends, and called MSCI a flow story that is priced in.
Source: CryptoPotato
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