Michael Saylor: Strategy in Discussions with MSCI Regarding Potential Index Removal

BlockBeats News, December 3rd, according to Reuters, Michael Saylor said Strategy is in communication with MSCI regarding the decision to potentially remove it from the index. Index provider MSCI will make a decision on January 15th. According to a report by JPMorgan last month, if other index providers also follow suit in removal, it could lead to a massive outflow of up to $8.8 billion.

Strategy is currently a constituent of the MSCI USA and MSCI World indices, with part of its market value tied to benchmarks through passive tools like ETFs. JPMorgan noted in the report that once removed, it would raise concerns in the market about the company's costs and future equity and debt financing capabilities. When asked about communication with MSCI, Saylor said, "We are engaged in this process," and added that he is "unsure" if JPMorgan's figure on the outflow is accurate.

Saylor also discussed the recent price drop of Bitcoin. Bitcoin hit a peak of over $120,000 in October this year due to a friendly attitude from U.S. President Trump and favorable global regulatory changes, but then experienced a sharp decline. Recent cautious sentiment towards high-risk assets, fueled by concerns about an AI bubble, high-tech valuations, and overall economic uncertainty, has cooled Bitcoin's rally in the past few weeks. Strategy's stock price has dropped over 37% this year.

During an interview at the Binance event in Dubai, Saylor said, "This stock has high volatility because the company is built on leveraging Bitcoin. If Bitcoin drops 30%, 40%, the stock will drop even more because the stock itself is leveraged."

Disclaimer: This content is provided for general branding and informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online events, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets or to use any services. Crypto assets are highly volatile and may result in loss. WEEX services and online events may not be available in all regions and are subject to applicable laws, regulations, and eligibility requirements. You are responsible for ensuring that your use of WEEX services complies with local laws and for carefully assessing the risks before participating in any crypto-related activities.