MSCI recently made a move that temporarily retained Bitcoin Treasury Company Strategy's position in the index, which looks like good news, but there's a hidden clause behind it—they simply won't increase the number of shares included. What does this mean? Simply put, Strategy shares newly issued through ATM that want to enter index funds' portfolios have no chance.
Passive fund inflows are being blocked this way. Strategy's original financing playbook worked like this: issue new shares → attract index funds to follow → expand bitcoin reserves → attract more capital. Now the middle link is broken. Although MSCI publicly acknowledges the rationality of cryptocurrency reserve-backed stocks, it actually refuses to foot the bill for newly issued shares, effectively cutting off the capital circulation loop.
As a result, other Bitcoin Treasury companies like Metaplanet and Capital B also face the same predicament. Don't be fooled by each company competing to hoard coins—once index funds, this major source of capital, cut off supply, the story of incremental capital needs to be rewritten. The market is re-examining the passive investment mechanism itself—how much support it can actually bring to this emerging asset class has now become a major question.
MSCI recently made a move that temporarily retained Bitcoin Treasury Company Strategy's position in the index, which looks like good news, but there's a hidden clause behind it—they simply won't increase the number of shares included. What does this mean? Simply put, Strategy shares newly issued through ATM that want to enter index funds' portfolios have no chance.
Passive fund inflows are being blocked this way. Strategy's original financing playbook worked like this: issue new shares → attract index funds to follow → expand bitcoin reserves → attract more capital. Now the middle link is broken. Although MSCI publicly acknowledges the rationality of cryptocurrency reserve-backed stocks, it actually refuses to foot the bill for newly issued shares, effectively cutting off the capital circulation loop.
As a result, other Bitcoin Treasury companies like Metaplanet and Capital B also face the same predicament. Don't be fooled by each company competing to hoard coins—once index funds, this major source of capital, cut off supply, the story of incremental capital needs to be rewritten. The market is re-examining the passive investment mechanism itself—how much support it can actually bring to this emerging asset class has now become a major question.