The market is falling again. What does MicroStrategy have to do with it?

👎 The morning started not with coffee, but with Bitcoin ($BTC) dropping below $82K. This is the first drop below such levels in 7 months. About $1B was liquidated in an hour.

▫️What happened to MicroStrategy?

Last night, news began to emerge (https://x.com/ThCryptoCook/status/1991577392155164691?s=20) that MSCI (the index provider) may introduce a new rule that would exclude all companies that have >50% of their assets in crypto.

In this regard, JPMorgan warns that MicroStrategy may face an outflow of funds of about ~$2.8B if MSCI excludes it from its indices. If other major index providers follow this rule, the outflow could reach $8.8B.

😎 Shares of $MSTR continue to fall, down 40% over the month. Funds will be forced to sell even more shares, which will create pressure. The average purchase price of Bitcoin ($BTC) by the company is ~$74K; below this price, MicroStrategy will be at a loss - this could seriously impact the company's balance.