To The Moon

Strategy (MSTR.US) disclosed on Monday that it purchased 1,229 bitcoins for a total of $108.8 million between December 22 and 28. According to a filing submitted to the U.S. Securities and Exchange Commission (SEC), these newly acquired bitcoins were purchased at an average price of $88,568 per coin. The funds for these tokens were sourced from an offering of common stock. The company's total bitcoin holdings have now increased to 672,497 coins, with a total value of $50.4 billion based on an average cost of $74,997. Despite a challenging year for bitcoin, Strategy, led by Michael Saylor, remains in a profitable position. Last week, Strategy increased its cash reserves but did not purchase any bitcoin. At the time of writing, bitcoin was down 1.18% on the day, trading at $87,317. Strategy's stock price fell 2.15% on Monday. Data shows that bitcoin has declined approximately 30% since hitting a record high in early October. Over the same period, Strategy's stock price has plummeted more than 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 serves as a reminder that investors remain concerned this metric could soon turn negative after having previously enjoyed a significant premium. It is noteworthy that index compiler 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 the matter. MSCI stated: "MSCI proposes to exclude companies with digital asset holdings accounting for 50% or more of their total assets from the MSCI Global Investable Market Indexes." The consultation period for this proposal will last until December 31, with a final decision to be announced by January 15, 2026. This implies that Strategy could face the risk of being excluded from mainstream indices like those from MSCI. Currently, Strategy is a constituent of the Nasdaq-100 Index, the MSCI USA Index, and the MSCI World Index. Analysts at JPMorgan noted in a report released in November that approximately $9 billion of Strategy's total market capitalization likely exists as passive holdings through exchange-traded funds (ETFs) and mutual funds linked to major benchmark indices. The analysts warned: "If MSCI proceeds with the exclusion plan, it could lead to outflows of $2.8 billion from Strategy... If other index providers follow MSCI's lead and remove the company from all other equity indices, the outflow could reach $8.8 billion." Since early October, when bitcoin surged strongly to set a historic peak exceeding $126,000, its price has plummeted precipitously; this sudden reversal caught bullish investors off guard, and the crypto asset market has consequently struggled to stabilize, falling into turmoil. During this period, market trading volume has remained persistently low, investor confidence has been dampened, and many have chosen to exit the bitcoin ETF market. Simultaneously, the derivatives market has exhibited a cautious, wait-and-see attitude, showing little willingness to actively bet on a price rebound. Consequently, bitcoin may experience its fourth annual decline in history this year, which would also be the first annual drop not accompanied by a major scandal or industry collapse.