On Monday, the company now known as Strategy—formerly MicroStrategy—announced in an SEC filing that it has purchased more Bitcoin. This latest acquisition brings its total holdings to nearly 680,000 BTC, with the current balance at 672,497 BTC.
Bitcoin Purchases vs. Stock Performance
Analysts, including one known as Lirrato on X, noted that the company bought 22,498 BTC in December alone. To hit 680,000 BTC by January, Strategy needs just 7,503 more coins—a threshold it already exceeded last month.
Despite these aggressive Bitcoin purchases, the company’s stock (MSTR) has fallen sharply. It has dropped more than 50% so far in 2025 and was trading around $163 on Monday.
Adding to Strategy’s challenges, the firm could be just ten days away from being removed from the MSCI index, pending a formal announcement. In an October proposal, MSCI suggested that companies holding digital assets worth 50% or more of their total assets should be excluded from its global benchmarks. MSCI argued that such firms resemble investment funds, which are not included in its indexes.
Strategy Prepares for Potential Financial Impact
MSCI is currently conducting a public consultation. If it decides to exclude Digital Asset Treasury companies like Strategy, other index providers could follow suit.
In a public letter, Strategy’s CEO Phong Le and co-founder Michael Saylor discussed the potential fallout from an MSCI exclusion. They estimated it could trigger about $2.8 billion in stock liquidation, which might have a chilling effect across the industry.
Analysts at TD Cowen noted that roughly $2.5 billion of Strategy’s market value is linked to MSCI, with another $5.5 billion tied to other indexes. JPMorgan’s analysis suggests that an MSCI exclusion could lead to $2.8 billion in outflows. That figure could rise to $8.8 billion if Strategy is also removed from additional indexes, such as the Nasdaq 100, the CRSP US Total Market Index, and various Russell indexes under the London Stock Exchange Group.
Alongside these potential challenges, Strategy may soon face significant financial losses—a stark contrast to the $2.8 billion profit it reported in the third quarter of last year.
Additionally, the Bloomberg Billionaires Index shows that Michael Saylor’s personal wealth has fallen by about 40% during this downturn, to roughly $3.8 billion.
However, on Monday, cryptocurrency prices rebounded strongly. Bitcoin, along with other digital assets like Ethereum (ETH), Binance Coin (BNB), Solana (SOL), and XRP, climbed back above key levels, renewing optimism among investors.
Frequently Asked Questions
FAQs Bitcoin Accumulation by Strategic Buyers
Q1 What does Bitcoin accumulation mean
A It refers to the ongoing process of buying and holding Bitcoin over time regardless of shortterm price fluctuations with the belief in its longterm value
Q2 Who is a strategic buyer in this context
A Typically this refers to a large investor institution or fund that makes significant planned purchases as part of a longterm investment strategy not just a onetime trade
Q3 Why would someone buy 1287 BTC when the price is going up Isnt that risky
A A strategic buyer likely believes the longterm potential of Bitcoin outweighs the current higher price They may be using a strategy called dollarcost averaging or simply have a strong conviction that the price will go even higher in the future
Q4 What is dollarcost averaging and how does it relate
A DCA is an investment strategy where you invest a fixed amount of money at regular intervals This large purchase could be part of a similar disciplined approach helping to average out the purchase price over time instead of trying to time the market
Q5 What signal does this kind of large purchase send to the market
A It is often seen as a sign of strong confidence from sophisticated investors It can suggest they believe Bitcoin is still undervalued longterm which may influence market sentiment and reduce selling pressure
Q6 Does this mean the price of Bitcoin is guaranteed to keep rising
A No not at all Past accumulation by large buyers doesnt guarantee future price increases The market is volatile and influenced by many factors This is a single data point not a prediction
Q7 As a beginner should I copy this strategy and buy a lot of Bitcoin now