CONFIRMED: Strategy Will Be Kicked Out of $21T Global Index (ATTACK WORKED) | EP 1615

Nico Moran (0:03)

Last night, we got confirmation that the $21 trillion attack to kick strategy out of the MSCI Global Index might have finally worked. And I think the real question for everyone here is, will this result in a $2.8 billion dump of micro strategy shares being dumped overnight, or, you know, strategy shares being dumped overnight when this gets finalized? So the rules were finalized, and I'll get into it, all the details. So if you are a strategy holder, you don't have to panic that Monday morning, we'll see a dump, which maybe we will. But when it does get finalized, when the official deadline happens, what does this mean for, of course, all of us here as Bitcoiners, but more specifically for strategy holders? So if you remember the saga, we've been covering this since, I believe, definitely August of this year. We've heard some rumors about this at the beginning of the year. What is going on? Well, the MSCI Global Index, which holds about $21 trillion of assets under this passive flows. It's all the biggest companies. It's all of the best companies. Strategy and Metaplanet were a part of this. We've covered this in the past. I'll bring up some of the old kind of context for you guys on this show. But I think we were talking about this towards the end of September, that it did look like this was a specific attack to kick out Bitcoin Treasury companies from this Global Index, the MSCI Global Index.

At the time, it wasn't finalized. Now it seems, as of last night, the rules are in. It looks like Strategy and Metaplanet and 11 other, nine other companies will also get kicked out of this index. For us, as Bitcoiners, it does look like a specific attack on Bitcoin Treasury companies. But the rules just got proposed, or rather not just proposed, finalized last night. There is a little bit of a delay on when this is going to go into effect. So it doesn't look like it's going to necessarily affect Strategy overnight. But anyways, what am I talking about? So I'm going to use the CoinDesk article here for you guys. And it goes, MSCI approves rules that could eject Strategy, Metaplanet from equity indexes. The rules proposed in August would see companies that exist mainly to hold investments as no longer eligible for index inclusion. So again, MSCI, which is the Morgan Stanley Global Index Fund, it doesn't really have anything to do with Morgan Stanley anymore, but it's one of the world's biggest stock index providers. And they just finalized their rules proposed in August that could remove shares of leading Bitcoin treasury companies like Strategy and Metaplanet from its global equity indexes. So under the rules announced yesterday, companies that mostly hold investments rather than running a real business... I'll stop there. Interesting. I think this has been part of the entire conversation amongst Bitcoiners here, whether Bitcoin treasury companies are actually real businesses at all. Is there an actual business model of just buying Bitcoin and selling your shares on top of it? So, you know, that's not really lost on me. But anyways, companies that mostly hold investments rather than running a real business will be deemed ineligible for MSCI's Global Investable Market Indexes. The final list of affected firms is due November 11th, and the change text effect at the close of November 30th. So that's the timeline. The rules were finalized last night. This has been a saga since at least August. We've heard, well, actually, it's probably been since the end of last year, if I remember my timeline, and the beginning of this year where we were hearing kind of rumors that this was taking place. Then August, this was proposed now, October, mid-October, it is finalized. And again, 11 companies will be on the list to get kicked out on the 11th of November, so about a month away. And then at the end of November, they will take place. So if you are a strategy holder, and you're looking at this, you could probably expect a November 30th, or you know, December dump in strategy, might not be as bad as you would expect. I'll get through the numbers there for you a little bit. I was joking this morning. Sorry guys, this sinus thing is killing me today again. I was joking this morning saying that maybe in November, or rather beginning of December, there might be a generational buy on strategy, all right? Like they might get a good dump, might be a generational buy. I think we all might have to be strategy holders. You know, not financial advice, but if there is a good dump in strategy, I don't know, it's looking pretty sweet. Like it looking like a pretty good buy here. You know, we joked about it last, or the entire year, like under $100 strategy seems like a really good buy. Now I'm not saying that's what's gonna happen here at the end of November, but if it does happen, might be a pretty good buy. Actually, you might be able to get even a better price on that. But going further, and this is where you'll start to see how much is actually gonna get dumped and the potential kind of pain that you might feel as a strategy holder. And then, of course, I will talk about what does this mean for Bitcoin. Okay, so the decision is important because it affects demand for the company's shares. Many investors gain exposure to stock markets by placing their money in funds that track an index. When a company is added to the index, those funds must buy its stock. When it's removed, they must sell whatever the fund managers think of the company. And this is why when strategy was added to the MSCI Global Index, when Metaplanet was added to the Global Index, it was a win for Bitcoiners. I mean, arguably more so for the Bitcoin Treasury companies, and the stockholders. But this is like the crux of the conversation. If you remember when strategy got included, Taylor was out here saying, like, hey, look, passive inflows into not only strategy, but of course, into Bitcoin because strategy is real. You know, I know they have like a intelligence, you know, business analytics business, but everyone just knows them as a essentially a Bitcoin Treasury company, a Bitcoin accumulation machine. They take your money, they buy Bitcoin. Or further, you know, more technical, they take out a lot of debt, and then they buy more Bitcoin, and then you buy their share, and then this flywheel continues.