BREAKING: Michael Saylor RESPONDS To The $21T ATTACK on Strategy!!! | EP 1582

**SPEAKER_1** (0:02)
Michael Saylor has officially responded to MSCI attack that would force Strategy out of their $21 trillion global index. And it can't be a coincidence that on the very same day that Strategy finally bought some Bitcoin for the first time in 10 weeks, that Strategy breaks their silence on this attack. Michael Saylor and Strategy is doing everything possible to downplay the severity of this attack and prevent close to $3 billion of Strategy being dumped overnight from the MSCI index. And of course, this includes him going as far as building up a $5 billion cash reserve to keep Strategy afloat no matter what comes in the future, guys. So look, very interesting story. And this does have a lot bigger implications than just for Strategy. And I think that's the biggest signal when I read this 10 page proposal letter from Strategy this morning in response to the attack from the MSCI index. It's actually, look, I'm not going to tell you guys to go read the 10 page letter. It is, you know, some dry financial jargon, but I read it this morning. There is some big takeaways from it, but before I get into the takeaways that I got from this letter, let's just go from the official Tweet here from Strategy. And there is a few things you can take away from just a Tweet thread here. So Strategy response today to MSCI's proposed non-operating company exclusion. While not material to MSTR, the proposal is misguided, flawed, and conflicts with established securities laws and accounting principles. Again, I will read some of the letter, but not the entirety of the letter because I think there is some interesting stuff just in this Tweet alone. MSCI's new proposal is gerrymandered to target digital asset treasury companies. It repackages MSCI's unpopular previously withdrawn proposal targeting digital asset treasuries. Its principal effect is to remove two major digital asset treasuries from MSCI index and exclude future DATs from entry or digital asset treasuries. MSCI relies on unprecedented clarification to define Bitcoin as a non-operating asset based on US. GAAP and SEC guidance. Strategy reports its Bitcoin business as an operating segment and its Bitcoin gains and losses as operating expenses. This last one is the most interesting. Funds that track MSCI indices represent roughly 3% of MSCI shares outstanding, which is only roughly 60% of one day's trading volume. That is, I think that's a big kind of, I don't want to say necessarily downplay, but due to the math, it is true. It is only a portion of one day trading volume of strategy. Though overall, from what I've saw and seen in the math that I've been able to do, it does seem to account for about $2.8 billion of strategy that is held in this MSCI global index. So, yes, moving forward, it won't necessarily take too much away from strategy's daily traded volume, but it would be an overnight hit to strategy's MSTR common stock price, which I think is why we're seeing this strongly worded letter. And it is, in fact, a strongly worded letter. Anyway, before I move on, they did drop this website, Strategy's Response to MSCI's Consultation on Eligibility of Non-Operating Companies. It does ask you to register and support and add your name to a list here, in support of the MSCI dropping this proposal, which you may think doesn't have any effect at all. But as was mentioned, there was a previous proposal from MSCI that something similar happened. People basically signed a petition. It wasn't just MSCI bag holders or, sorry, stockholders, but also companies that are a part of the MSCI, and they did roll it back. Though, it does seem that they are now trying to re-brand that same proposal, and this is what that latest attack was. Remember, we did a show on this a little while ago. And it seems at least if you are looking at the strategy perspective, it seems that they are just trying to re-brand the same proposal as a new thing that is wanted by companies that are in the global index. All right, anyways, again, I'm not going to read you the whole thing. I just want to read a portion of it, and then I'll give you kind of my summary of what I read in this letter that I do find interesting in context of this idea of how is Bitcoin looked at right now? What is the general perspective of Bitcoin overall? Yes, we've seen a lot of traction of Bitcoin in institutional investment, hedge funds, obviously the ETF, but there is a very direct attack on Bitcoin in this letter, at least if you are reading it from the strategy perspective, which I find it to be the most interesting aspect of this. Again, I don't hold MSTR. Obviously, Saylor, biggest Bitcoin treasury company in the world, one of the biggest holders of Bitcoin, period. And so this isn't just a strategy story here. This does involve just the general idea of Bitcoin at large. So anyways, a little bit of the executive summary, and then I'll kind of just summarize the main takeaways that I got from this letter. So late last year, MSCI proposed, excluding from its indices, all companies who digital assets holdings represent 50% or more of total assets. Hundreds of organizations, including strategy, oppose that proposal on the grounds that it was arbitrary, discriminatory, and targeted a foundational technology that can help fuel our nation's economic growth. Weeks later, MSCI dropped the proposal.