Let's turn our attention to crypto and welcome in our next guest. Joining us now, Fong Lee, the president and CEO of Strategy. Fong, thank you for taking the time to be with us this afternoon.Now, Strategy just completed its largest single time Bitcoin purchase since July. You added nearly a billion dollars in just the past week. You know, what drove the timing and the scale of this latest acquisition.>> Yeah, look, Bitcoin is always an important purchase and a good buy for us at any point in time. Uh two w ...

Today, crypto investors react to the Fed's last meeting in 2025. The CFTC pilots crypto as collateral for derivatives markets. And Marco Santory of Soulmate discusses the company's merger with web 3 VC firm Rockway X.Welcome to CNBC's Crypto World. I'm Mackenzie Sagal. Digital currencies are mixed today after rising sharply in the previous day's trading.By 2:15 Eastern, investors were looking to make sense of the Federal Reserve's final meeting in 2025. The central bank chose to cut the Fed funds rate amid ...

Core Viewpoint - MicroStrategy is opposing MSCI's proposal to remove Bitcoin-heavy companies from major equity indexes, arguing that it mischaracterizes their operational model and could lead to significant forced selling in the market [1][5]. Group 1: Company Response - MicroStrategy, now referred to as Strategy, issued a statement asserting that MSCI's proposal misrepresents how Bitcoin-heavy companies operate, emphasizing that it is an operating business utilizing Bitcoin reserves for credit instruments and capital raising [2]. - The company contends that its operational model is fundamentally different from a passive investment vehicle that tracks a single asset [3]. - Strategy's letter urged MSCI to reject the proposal, claiming it would impose arbitrary conditions that could stifle innovation and damage MSCI's indices' reputation [3]. Group 2: Proposed Threshold and Discrimination - Strategy criticized the proposed 50% digital-asset threshold as discriminatory, arguing that it unfairly targets Bitcoin-heavy companies while leaving other concentrated sectors, such as oil and real estate, unaffected [4]. Group 3: Market Implications - The controversy began when MSCI launched a consultation on classifying digital asset treasuries, which placed Strategy and other Bitcoin-focused firms under review due to the proposed threshold [5]. - A JPMorgan analysis indicated that if MSCI removed Strategy, it could face approximately $2.8 billion in forced selling pressure, with potential total impacts reaching $8–9 billion if other firms followed suit [5]. - The implications of exclusion from the index could reduce liquidity for Strategy and increase its cost of capital, limiting corporate treasuries' role as a pathway for investors seeking indirect Bitcoin exposure [6]. Group 4: Broader Industry Context - This situation highlights a structural debate regarding whether Bitcoin exposure should be primarily through regulated exchange-traded funds or through publicly traded companies holding digital assets on their balance sheets [7].

Core Viewpoint - Strategy (MSTR) has formally responded to MSCI's proposal to exclude companies with digital asset holdings representing 50% or more of total assets from MSCI Global Investable Market Indexes, arguing that such a move is unjust and detrimental to the industry [1][4]. Group 1: Company Positioning - Strategy asserts that it operates as a digital asset treasury company (DAT) that utilizes digital assets as productive capital rather than merely tracking price movements [2]. - The company emphasizes that it builds bitcoin-backed credit instruments, manages an active corporate treasury program, and maintains a global enterprise analytics software business, indicating a diversified operational model [2]. - Strategy claims that investors are buying into the company's strategy and management, not just a passive investment in bitcoin [2]. Group 2: Response to MSCI Proposal - The company argues that the proposed 50% threshold for exclusion is arbitrary and unworkable, noting that other industries with concentrated reserves, such as oil and real estate, remain eligible for MSCI indices [3]. - Strategy contends that the proposal injects policy views into index construction at a time when federal policy is shifting to support digital asset innovation, warning that exclusion could lead to significant passive capital outflows and hinder American competitiveness [4]. - The company urges MSCI to extend the consultation period and provide a more detailed rationale for any proposed changes, highlighting the potential negative impact on the expansion of new financial technologies [4]. Group 3: Company Structure - Strategy is organized as a conventional operating company and does not have a fund or exchange-traded product (ETP) structure [5]. - The company is not classified as an investment company under applicable laws and does not create fund-like tax treatment for investors [5]. - Strategy has a long history as an operating software business, reinforcing its identity as a traditional operating entity rather than an investment fund [5].

Core Viewpoint - The company Strategy (NASDAQ:MSTR) is open to selling Bitcoin to fund dividend payments if necessary, marking a shift in its previous stance on Bitcoin retention [1][3]. Group 1: Company Strategy - CEO Phong Le stated that selling Bitcoin would be considered if the company's trading value fell below the net asset value (mNAV) of its Bitcoin holdings, emphasizing that this would be a last resort [1][2]. - The ultimate goal of the company is to maximize Bitcoin per share, and selling Bitcoin to pay dividends is seen as more accretive under certain conditions [2]. Group 2: Market Position - The company currently holds 650,000 BTC valued at $56.5 billion, representing the largest corporate Bitcoin holdings [5]. - The company's mNAV has recently compressed to 0.99, indicating that it is now valued below its Bitcoin holdings, which reflects a decline in the digital asset treasury trade's appeal [6]. Group 3: Leadership Comments - Michael Saylor, the company's Chair, addressed skepticism regarding the company's willingness to sell Bitcoin for dividends, asserting that it is possible to sell a small fraction of its holdings to cover dividend payments while still increasing Bitcoin holdings [4].

Core Viewpoint - The article highlights the stark contrast between the significant drop in Strategy's stock price and the continued bullish outlook from most analysts, indicating a potential disconnect between market performance and analyst sentiment [1][3]. Group 1: Stock Performance and Analyst Ratings - Strategy's stock price plummeted by 60%, resulting in a market cap loss of $73 billion, yet only 3 out of 19 analysts changed their stance to bearish, with 15 maintaining a "buy" rating [1]. - Among the analysts with "buy" ratings, 12 provided target prices, with a median target price of approximately $485, suggesting an implied upside of over 150% from the recent closing price of $189 [1]. - The highest target price from Benchmark Co. analyst Mark Palmer is $705, indicating a potential increase of nearly four times the current stock price [1]. Group 2: Market Sentiment and Comparisons - The optimistic sentiment towards Strategy is particularly pronounced among large U.S. companies, with its median target price indicating the highest potential upside in the Nasdaq 100 index [3]. - Strategy's stock price premium has significantly decreased, now only 1.2 times the value of Bitcoin, compared to previous peaks where it was over 2.5 times [7]. - Analyst Gus Gala previously downgraded Strategy to "sell" due to intense market competition but later adjusted the rating to "neutral" after the stock's decline [6][8]. Group 3: Future Outlook and Bitcoin Correlation - Analysts believe that Bitcoin will rebound strongly, similar to past trends, which could significantly boost the value of Strategy's cryptocurrency assets [2]. - Palmer predicts Bitcoin prices could soar over 140% to $225,000 by the end of 2026, which would likely drive Strategy's stock price higher as well [8][9]. - Despite some analysts lowering their target prices, they remain optimistic about the stock's potential for recovery in the next 12 months [8].

Market Outlook - The market is currently in a bullish phase, with a year-end target of 7,000 and a projection of reaching 8,000 to 8,400 by the end of next year [1] - The transition year ahead will see a shift from Fed influence back to Wall Street determining the credit cycle [5] Federal Reserve Policy - The Federal Reserve is expected to lower the Fed funds rate to 2.75%, which is considered the neutral rate, and the current hawkish sentiment is viewed as misguided [2][4] - There is an anticipation of the Fed increasing its balance sheet, with estimates ranging from 25 billion to 40 billion per month, which is not classified as quantitative easing (QE) [6] Investment Opportunities - Interest rate-sensitive sectors such as regional banks and homebuilders are highlighted as potential areas for investment, having already corrected from their exponential moving averages [7] - The AI sector and the "Magnificent Seven" stocks are also seen as promising, but a broader market rally is necessary for sustained growth [13] Bitcoin and MicroStrategy - Bitcoin is viewed as a buying opportunity, especially as it has recently dropped from 457 to 155, with current trading around 180 [9][12] - MicroStrategy is considered a misunderstood stock, with its balance sheet being transparent due to blockchain technology, contrasting with traditional financial institutions [11] Economic and Political Factors - The combination of monetary and fiscal policies, along with potential supply-side policies from political figures, could contribute to a strong market performance next year [14][15] - The midterm election cycle is expected to have a different impact than previously anticipated, with no significant corrections predicted [15]

MicroStrategy (MSTR) shares closed comfortably in the green on Dec. 9 as Bitcoin (BTCUSD) – the world’s largest cryptocurrency by market cap – rallied ahead of the Federal Reserve’s rate decision. BTC pushed past $94,000 this morning as investors grew more optimistic that the U.S. central bank will deliver a “hawkish cut” on Thursday. More News from Barchart Despite today’s gain, MicroStrategy stock remains down over 50% versus its year-to-date high in mid-July. www.barchart.com Is It Worth Buying Mic ...

Core Viewpoint - MicroStrategy is intensifying its Bitcoin acquisition strategy despite a significant decline in its stock price, which has dropped over 50% in the last six months [1] Group 1: Bitcoin Acquisition Strategy - The company acquired 10,624 Bitcoin for $962.7 million at an average price of $90,615 per coin, increasing total holdings to 660,624 Bitcoin valued at $49.35 billion [1] - This purchase signifies a return to aggressive buying after a period of smaller acquisitions due to adverse market conditions [2] Group 2: Funding and Financial Position - The recent acquisition was primarily funded through the sale of $928.1 million in common stock and an additional $34.9 million from preferred stock sales [2] - MicroStrategy has established a $1.44 billion cash reserve to manage dividend payments on preferred stock and interest on debt, indicating a shift in funding strategy [5] Group 3: Market Performance and Leadership - The stock hit a 52-week low of around $155 but has since recovered to $190, remaining below recent highs [4] - Executive Chairman Michael Saylor is actively promoting Bitcoin to sovereign wealth funds and institutional investors [4] Group 4: Investment Risks and Strategy Changes - MicroStrategy holds approximately 3.1% of the total Bitcoin supply, making it vulnerable to significant risks if market conditions worsen [6] - CEO Phong Le has acknowledged the possibility of selling Bitcoin under certain crisis conditions, marking a departure from the company's previous "never-sell" philosophy [7] - The company's mNAV is nearing the critical 0.9 danger zone, raising concerns about potential forced sales if stock value falls below Bitcoin holdings [7] Group 5: Preferred Securities - MicroStrategy has issued four preferred securities in 2025, raising $6.7 billion, with the largest being the U.S. IPO of the year [8] - These preferred instruments provide tax-deferred dividends as a return of capital, expected to continue for at least 10 years due to the company's negative taxable earnings profile from its Bitcoin strategy [8]

Andrew Tate, the former kickboxing champion and controversial online personality, just can't keep himself out of the world of crypto trading. Tate, who suffered a complete wipeout of his entire trading balance on the crypto derivatives exchange Hyperliquid last month, is not new to digital assets. Related: Andrew Tate predicts Bitcoin will crash to $26K before its biggest move The controversial personality who gained notoriety over the charges of rape and human trafficking in Europe has often promoted cry ...