Strategy Company (MSTR) recently disclosed that between December 22nd and 28th, it purchased an additional 1,229 bitcoins with a total investment of $108.8 million. According to documents filed with the U.S. Securities and Exchange Commission, the average purchase price for these transactions was $88,568 per bitcoin, funded through the issuance of the company’s common stock. After this purchase, Strategy’s total bitcoin holdings have increased to 672,497. Based on its average cost price of $74,997, the total value of these bitcoins is approximately $50.4 billion. Despite challenges in the bitcoin market this year, Strategy, led by Michael Saylor, remains profitable. Notably, although the company increased its cash reserves the previous week, it did not purchase any bitcoins during that period.
As of now, the bitcoin price has fallen by 1.18% intraday to $87,317; Strategy’s stock price also dropped by 2.15% on Monday. Data shows that since hitting a record high in early October, the bitcoin price has corrected by about 30%. During the same period, Strategy’s stock price has fallen by over 50%. According to data from the company’s website, its key valuation metric, mNAV (the ratio of the company’s enterprise value to the value of its bitcoin holdings), was approximately 1.1 on Monday. This reflects ongoing market concerns that this metric, which once enjoyed a significant premium, could soon turn negative.
Meanwhile, index provider MSCI is considering excluding companies that hold bitcoin or other digital assets as treasury assets from its indices and has sought feedback from the investment community on this matter. MSCI has proposed excluding companies with digital asset holdings accounting for 50% or more of their total assets from the MSCI Global Investable Market Indices. The consultation period will last until December 31st, with a final decision expected by January 15, 2026. This means Strategy may face the risk of being excluded from major indices such as MSCI. Currently, Strategy is a constituent of the Nasdaq 100 Index, the MSCI USA Index, and the MSCI World Index. Analysts at J.P. Morgan noted in a November report that of Strategy’s total market capitalization, approximately $9 billion may be passively held by exchange-traded funds and mutual funds linked to major benchmark indices. The analysts warned that if MSCI proceeds with the exclusion plan, it could lead to outflows of around $2.8 billion from Strategy; if other index providers follow suit, the outflow could reach $8.8 billion.
Since early October, after bitcoin prices surged strongly and set a historical peak exceeding $126,000, they have experienced a significant correction, making it difficult for the market to stabilize and plunging into volatility. During this period, market trading volume has remained low, investor confidence has been shaken, and many have chosen to withdraw from the bitcoin ETF market. The derivatives market has also adopted a cautious wait-and-see attitude, lacking the active willingness to bet on a price rebound. Consequently, bitcoin may experience its fourth annual decline in history this year, marking the first annual decline not accompanied by a major scandal or industry collapse.
