Why Strategy Was Not Removed From MSCI

Source: CoinEdition Original Title: Why Strategy Was Not Removed From MSCI Original Link:

• A large, frequently traded U.S. stock
• Held by many big investment firms
• Eligible under MSCI’s size and liquidity thresholds

In short, keeping Bitcoin on the balance sheet doesn’t stop a company from being in an MSCI index, even if its earnings look different from those of other companies.

Still, while the MSCI issue is settled, debate around Strategy itself remains intense.

Investor Andy Constan described $MSTR as effectively “a 1.27 times levered ETF trading at its NAV and paying 10% for its leverage.”

He argued it shouldn’t be valued like a normal company using metrics like P/E ratios. Constan also restated that Strategy probably won’t ever qualify for indexes like the S&P 500, which require steady, officially reported profits.

In a separate discussion, analyst Novacula Occami disagreed with the idea that Strategy’s preferred shares (like $STRC) are a form of digital credit. He pointed out that they are actually equity (ownership shares) and not a loan, don’t give holders any rights to the company’s Bitcoin, and provide less security than standard preferred shares.