00:00
Speaker A
MSCI decision move sailor strategy towards index exit. Much to do about nothing in my opinion, but this seems to be the biggest story of the day, rocking Treasury companies, right?
00:11
Speaker A
So listen, strategy and Metaplanet are in the MSCI index. That means that passive flows come into these stocks because the index has to buy them to provide said index.
00:22
Speaker A
We've been talking about this story for a while, but there were some rumors that the MSCI may consider new ways to determine who qualifies to be in the index and companies that don't have meaningful cash flows may be eliminated, right?
00:34
Speaker A
Strategy and Metaplanet, they make their money or their balance sheet based on financial engineering and not an underlying operating business. And the MC MSCI is saying, no, no, no, no, we don't necessarily want that. So the the list is going to come out November 11th, we don't actually even know.
00:43
Speaker A
Uh and it would go into effect November 30th.
00:46
Speaker A
But the big story that you're reading about this, you know, is people saying that would mean a $3 billion dollar dump of strategy stock.
00:54
Speaker A
It's all over. $3 billion dumping. $3 billion is not even one trading day of strategy stock, which is one of the most highly traded assets in the stock exchange.
01:04
Speaker A
Not even a day of daily volume. So even if 3 billion was market dumped in a day, which is not how this would happen, it would slowly unwind and they would be eliminated. It would be a rounding error in the amount of trading that happens on strategy stock on a daily basis.
01:17
Speaker A
We have yet again managed to make a massive narrative out of something that's probably a meaningless rounding error. Yes, there's some signal in them potentially being delisted because people say that they could then be delisted from any other index they're in, if all those indexes maybe
01:33
Speaker A
adopt the same rules as the MSCI, but we have literally no evidence that that will happen.
01:39
Speaker A
Uh, we just have a bunch of people on the internet saying things, which uh is basically news at this point.
