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227 sats \ 7 replies \ @grayruby 22 Nov \ on: The end of the MSTR party? bitcoin
Some of them they can suspend dividend payments but not all of them. They can drastically reduce the yield which would essentially make the products useless and probably go to near zero.
What will be interesting is to see what happens is MSCI removes them from the index. As long as they are in the Nasdaq 100 index and etfs have to buy their shares I think they can continue to service the prefs with new common equity (dilution). But if they don't have a passive bid anymore, we are in a prolonged bear market and debt issuance becomes difficult they may have to sell some Bitcoin to pay the prefs. That would probably cause more selling pressure to both Bitcoin and the stock so I am guessing that would be a last resort.
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is MSCI similar to Russell index?
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They have a number of indices primarily used to capture international and global markets but they do have country specific and sector specific indices as well.
I think the Russell indices is only for small caps.
A quick check with AI says there is around 18T benchmarked to MSCI Indicies and 19T benchmarked to Russell Indices so I guess in terms of size they are very similar.
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