Bitcoin Accumulation Continues: Strategy Purchases 1,287 BTC Amid Rising Prices

Overview

On Monday, Strategy, previously known as MicroStrategy, disclosed a significant Bitcoin acquisition in a filing with the US Securities and Exchange Commission (SEC). This latest purchase increases the company’s total Bitcoin holdings to nearly 680,000 BTC, despite ongoing challenges with its stock performance and potential delisting from key financial indexes.

Recent Developments

Strategy announced the acquisition of Bitcoin, bringing its total holdings to approximately 672,497 BTC. Analysts noted that in December alone, the company acquired 22,498 BTC. To reach its target of 680,000 BTC by January, Strategy needs to acquire only 7,503 more coins, a figure that they have already surpassed last month.

However, the company faces significant hurdles as its stock (MSTR) has declined sharply, falling by over 50% throughout 2025, with its current trading price reported at around $163. This decline is compounded by the looming threat of being delisted from the Morgan Stanley Capital International (MSCI) index. A proposal from MSCI indicated that firms holding digital assets that constitute 50% or more of their total assets should be removed from its global benchmarks. MSCI justified this decision by asserting that firms like Strategy resemble investment funds, which are excluded from its indexes.

Currently, MSCI is conducting a public consultation regarding its proposal. If Strategy is excluded, it could set a precedent for other index providers to follow. In a public letter, Strategy’s CEO and co-founder discussed the potential implications of MSCI exclusion, estimating that such a decision could lead to around $2.8 billion worth of the company’s stock being liquidated, which could have a chilling effect across the industry.

Analysts from TD Cowen highlighted that approximately $2.5 billion of Strategy’s market value is linked to MSCI, while another $5.5 billion is tied to other indexes. JPMorgan’s analysis suggests that if MSCI were to exclude Strategy, the company could experience $2.8 billion in outflows, which could escalate to $8.8 billion if delisted from additional indexes, including the Nasdaq 100 and various Russell indexes owned by the London Stock Exchange Group.

In addition to these challenges, Strategy may face substantial financial losses, contrasting sharply with the $2.8 billion profit reported in the previous year’s third quarter. Furthermore, the Bloomberg Billionaires Index indicates that co-founder Michael Saylor has experienced a significant decline in personal wealth, dropping approximately 40% to about $3.8 billion.

Despite these difficulties, the cryptocurrency market experienced a notable recovery on Monday, with Bitcoin and other digital assets such as Ethereum, Binance Coin, Solana, and XRP climbing above key levels. This recovery has sparked a renewed wave of optimism among investors.

From author

The current situation surrounding Strategy illustrates the complex dynamics at play in the cryptocurrency market, particularly how institutional investments and regulatory frameworks can influence company valuations and market sentiment. The juxtaposition of Strategy’s aggressive Bitcoin accumulation against the backdrop of declining stock performance and potential MSCI exclusion raises important questions about the sustainability of such strategies in the face of regulatory scrutiny.

Impact on the crypto market

• Strategy’s continued Bitcoin accumulation may bolster confidence among institutional investors in the long-term viability of Bitcoin as a store of value.
• The potential MSCI exclusion could lead to significant market volatility, affecting not only Strategy but also other firms with similar asset compositions.
• A decline in Strategy’s stock price could have a cascading effect on investor sentiment within the broader cryptocurrency market.
• The contrasting performance of Bitcoin and Strategy’s stock highlights the disconnect that can exist between cryptocurrency valuations and traditional equity markets.
• The recovery in cryptocurrency prices may indicate a renewed interest from investors, which could lead to increased capital inflows into the market.