Strategy now owns 649,870 bitcoin, worth about $56 billion, at today’s price of around $86,700. That is around 3% of all Bitcoin ever mined, and this amount is much bigger than the company’s $500 million yearly software revenue, the report said.
Since 2020, executive chairman Michael Saylor has made Bitcoin the company’s main treasury asset and has raised billions in convertible debt and equity to buy more coins whenever the price dropped, the Yahoo Finance report noted.
If MSCI removes Strategy, passive funds that track these indices will be forced to sell, JPMorgan estimated in the Yahoo Finance report. JPMorgan says Strategy could face $2.8 billion in immediate outflows and a total of $8–$9 billion if the Nasdaq 100 also removes it. This forced selling could push Strategy’s stock below its net asset value (NAV).
The model works only if Bitcoin keeps rising and Strategy’s stock stays above the value of its Bitcoin holdings. When Bitcoin fell from $109,000 in late 2024 to $80,700 last Friday, Strategy’s market-cap-to-Bitcoin ratio dropped from 2.5× to about 1.1×, making new fundraising harder and more dilutive.
In the Q3 earnings call, CFO Andrew Kang said the company has “multiple levers” to manage liquidity, including at-the-market equity sales and new preferred stock series STRK (8%) and STRF (10%), saying any damage would be limited.
The Trump administration has started a national Bitcoin reserve and promised lighter regulation, which could help Bitcoin starting early 2026, as per the report by Yahoo Finance. Michael Saylor remains firm, saying: “We are a Bitcoin operating company with a growing software business attached.” Whether MSCI accepts that argument — or Bitcoin rebounds — will decide Strategy’s future as the world’s largest corporate Bitcoin holder.
If MSCI removes Strategy, passive funds will be forced to sell the stock, which could cause billions in outflows.
Q2. Why is Strategy at risk because of its Bitcoin holdings?
Strategy is at risk because over 90% of its assets are in Bitcoin, and MSCI may remove such companies from major indices.
Since 2020, executive chairman Michael Saylor has made Bitcoin the company’s main treasury asset and has raised billions in convertible debt and equity to buy more coins whenever the price dropped, the Yahoo Finance report noted.
MSCI review coming soon
On January 15, 2026, MSCI will decide if companies that mainly hold cryptocurrency — called “digital asset treasury” firms — can remain in big indices like MSCI USA and MSCI World. Strategy is the largest company that does not meet MSCI’s proposed rules because Bitcoin makes up over 90% of its assets and is much bigger than its operating cash flow.If MSCI removes Strategy, passive funds that track these indices will be forced to sell, JPMorgan estimated in the Yahoo Finance report. JPMorgan says Strategy could face $2.8 billion in immediate outflows and a total of $8–$9 billion if the Nasdaq 100 also removes it. This forced selling could push Strategy’s stock below its net asset value (NAV).
MSTR’s growing debt load
Since 2020, Strategy has raised over $20 billion through zero- or low-coupon convertible notes. The debt includes: $2 billion 0% notes due 2030, $1.75 billion 0.625% notes due 2028, and several smaller notes maturing as early as December 2025. These notes convert into stock at 35% to 55% premiums, which gives bondholders cheap upside while Strategy gets almost free cash.The model works only if Bitcoin keeps rising and Strategy’s stock stays above the value of its Bitcoin holdings. When Bitcoin fell from $109,000 in late 2024 to $80,700 last Friday, Strategy’s market-cap-to-Bitcoin ratio dropped from 2.5× to about 1.1×, making new fundraising harder and more dilutive.
Break-even still safe — for now
Strategy’s average Bitcoin buy price is $74,433. At $86,700, the company holds an unrealized profit of 16.5%, or about $12 billion. But if Bitcoin falls below $70,000, Strategy could lose all paper gains and may need to post more collateral on some debts or face margin pressure.In the Q3 earnings call, CFO Andrew Kang said the company has “multiple levers” to manage liquidity, including at-the-market equity sales and new preferred stock series STRK (8%) and STRF (10%), saying any damage would be limited.
What happens after January 15?
The best case is MSCI keeps Strategy in the index or delays changes, which may help the stock premium recover and restart aggressive Bitcoin buying. The base case is Strategy gets removed, leading to forced selling and the stock trading closer to 0.8× to 0.9× NAV for months, making fundraising harder. The worst case is Bitcoin staying under $70,000 while MSCI removes Strategy, creating a cycle of selling and dilution that threatens its long-term ability to hold all 649,870 BTC, the report warned.Wider market context (2025)
More companies are adopting Bitcoin — like Metaplanet (Japan) and Strive (ASST) — but none come close to Strategy’s scale. Spot Bitcoin ETFs such as BlackRock’s IBIT and Fidelity’s FBTC have taken in most institutional money this year, reducing interest in leveraged Bitcoin companies like Strategy.The Trump administration has started a national Bitcoin reserve and promised lighter regulation, which could help Bitcoin starting early 2026, as per the report by Yahoo Finance. Michael Saylor remains firm, saying: “We are a Bitcoin operating company with a growing software business attached.” Whether MSCI accepts that argument — or Bitcoin rebounds — will decide Strategy’s future as the world’s largest corporate Bitcoin holder.
FAQs
Q1. What happens if MSCI removes Strategy from its index?If MSCI removes Strategy, passive funds will be forced to sell the stock, which could cause billions in outflows.
Q2. Why is Strategy at risk because of its Bitcoin holdings?
Strategy is at risk because over 90% of its assets are in Bitcoin, and MSCI may remove such companies from major indices.