O brave new world of digital asset treasuries, where the specter of MSCI’s wrath looms large, threatening to cast you into the abyss of exclusion! ๐งโโ๏ธ๐ธ
Behold, the MSCI Index, that grand inquisitor of the financial world, has summoned the investment community to a sacred ritual: shall Bitcoin and its ilk be banished from the hallowed halls of the index? ๐งพ
Some whisper that these digital asset treasuries, with their balance sheets bloated by crypto, resemble investment funds-those pariahs of the index realm! ๐คก
Charlie Sherry, the Head of Finance at BTC Markets, speaks with the gravitas of a prophet: “The odds are solidly in favor of exclusion, for MSCI only consults when the decision is already sealed!” ๐ง
The consultation, like a medieval trial, concludes on Dec. 31, with verdicts to be announced on Jan. 15. A mere fortnight of suspense! ๐ฐ๏ธ
Will the index demand more parameters? Shall we judge companies by their self-proclaimed titles or their crypto-centric ambitions? A labyrinth of bureaucracy! ๐งฉ
If exclusion comes, index-tracking funds shall sell, and the affected names shall weep in the streets of crypto! ๐ธ
Behold the list of 38 crypto companies under MSCI’s gaze: Michael Saylor’s Strategy, Sharplink Gaming, and miners Riot Platforms and Marathon Digital Holdings, all trembling in dread! ๐งโโ๏ธ
“When the soul of a company is but a ledger of digital coins, MSCI deems it unfit for the sacred index,” quoth Sherry, a man of profound wisdom. “A risk-management decision, for the sake of predictable fundamentals!” ๐ง
“This marks a shift from the era of crypto’s golden age, when corporate strategies were hailed as innovations. Now, the index providers tighten their noose, and the market returns to its conservative roots!” ๐งโโ๏ธ
JPMorgan’s analysts warn of a $2.8 billion loss for Strategy, a sum that would make even a Cossack weep! ๐ธ
Unclear if other indexes could follow suit
Sherry, ever the enigma, says it’s “hard to call” if others will mimic MSCI’s move. “Index providers watch each other like wolves, yet they rarely march in unison!” ๐บ
“S&P’s treatment of MicroStrategy shows precedent for strictness, yet each provider has its own methods and clients to please,” he adds, a man of profound insight. ๐ง
“If MSCI acts, others may follow, but no chain reaction is guaranteed!” ๐งจ
Strategy still dances on the edge of S&P 500 inclusion, according to 10X Research, which bets a 70% chance of its entry by year’s end! ๐ฒ
Clearer rules are good for crypto
Sherry, ever the sage, claims clearer rules are a boon. “When companies know how their treasuries are judged, uncertainty vanishes!” ๐ง
“Well-defined frameworks strengthen institutional confidence, even if short-term pain is inevitable for Bitcoin-heavy stocks!” ๐ธ
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2025-11-21 09:04