There is still a lot of concern and misinformation about MicroStrategy and whether they will have to sell any of the ~650,000 BTC they are holding.

Here is the current situation:

MSCI is a company that constructs stock indices. They decide which stocks are included in an index, and many investors buy index funds because it provides broad market access and low fees. This also means that if a stock like MicroStrategy is removed from an index, funds tracking the index will be forced to sell that stock.

Because companies like MicroStrategy primarily buy and hold Bitcoin, MSCI believes their business model resembles an investment fund more than an operating business. This affects all companies holding Bitcoin, but MicroStrategy is the largest. JPMorgan circulated an estimate that if removed from MSCI, MicroStrategy could face about $2.8 billion in outflows.

Michael Saylor downplays this risk, saying MSCI will not remove them, and even if it does happen, it won’t have a major impact. Some accuse JPMorgan of creating FUD to push MicroStrategy’s price down to force them to sell BTC, but in reality, no one knows for sure how significant the sell-off would be if MSCI makes a negative decision.

Meanwhile, MicroStrategy CEO Phong Le has appeared on several TV channels explaining that MicroStrategy might have to sell Bitcoin in the future if there is no other way to pay off debt and dividends. However, this is unlikely to happen in the next two years because they have just raised $1.4 billion in cash, enough to meet all obligations for 21 months without touching their Bitcoin. After that period, in theory, they may have to sell a small portion of BTC to cover financial obligations, though they are very reluctant to do so.

There is also speculation that CEO Phong Le is trying to manage expectations because previous statements by Chairman Michael Saylor like “never sell Bitcoin” were very strong but could become a legal risk if the company is ever forced to sell in the future. At that point, investors might feel they were misled.

In summary: MSCI will make a decision on January 15. If MicroStrategy is removed from the index, there will be selling pressure and it will become more difficult to raise capital if both the stock and Bitcoin prices fall. However, MicroStrategy does not need to sell any Bitcoin for at least the next 21 months thanks to the large amount of cash they have just raised...#JoinGrowthPointsDrawToWiniPhone17 #DecemberMarketOutlook $BTC $ETH