Analysis: MSCI's "hidden clauses" may cut off incremental capital inflows into Strategy.

PANews reported on January 8th that, according to CryptoSlate, MSCI, a global provider of stock and ETF market benchmarks, has announced that it will not remove Bitcoin treasury company Strategy for the time being. However, a hidden clause stating "MSCI will not implement any increases to the Number of Shares (NOS)" has attracted community attention. This clause means that shares newly issued by Strategy through ATMs will not be included in the MSCI index weighting and will not trigger passive fund purchases. In other words, MSCI acknowledges the existence of cryptocurrency reserve stocks but refuses to continue providing passive funds to support ATM issuances. Even if Strategy issues more shares, passive funds will not follow suit, cutting off incremental funds and breaking Strategy's "infinite funding cycle" of relying on issuing new shares to raise funds to purchase Bitcoin and then having ETFs force purchases to support the stock price. It is understood that in addition to Strategy, potentially affected Bitcoin treasury companies include Metaplanet and Capital B.