Group 1 - Strategy Inc. (MSTR) has once again failed to be included in the S&P 500 index [1] - Sandisk (SNDK), a computer storage device manufacturer, will be added to the S&P 500 index this Friday, replacing Interpublic Group (IPG) [1] - Over the past three months, Sandisk's stock price has surged nearly 400% driven by the AI concept [1]

Regulatory Actions & Restrictions - JPMorgan raised MicroStrategy (MSTR) margin requirements to 95% [1] - JPMorgan won't deliver MSTR shares to clients trying to transfer out [1] - Clients are unable to borrow against or move their MSTR shares held at JPMorgan [1] Market Manipulation Allegations - JPMorgan allegedly dumped $134 million of its own MSTR position before announcing the margin requirement increase [1] - The actions against MicroStrategy, a $59 billion company, suggest JPMorgan is concerned about something larger than just the stock price [1]

.@MicroStrategy typically starts the week by highlighting the amount of Bitcoin that recently was added to its stockpile, yet the company was unusually silent on Monday. https://t.co/R2rZ6MyuJc ...

Strategy typically starts the week by highlighting the amount of Bitcoin that recently was added to its stockpile, yet the company was unusually silent on Monday. The Bitcoin-buying firm stopped purchasing the asset for the first time in several weeks, as its stock price hovered near a 14-month low, according to TD Cowen Analyst Lance Vitanza. “We found out this morning that Strategy did not issue any securities under any of its ATMs, nor did it purchase any incremental Bitcoin,” Vitanza shared in an email, ...

Core Insights - Strategy (MSTR) shares have declined 41.1% year to date (YTD), significantly underperforming the broader Zacks Finance sector's growth of 11.3% and the Zacks Financial-Miscellaneous Services industry's decline of 10.1% [1][6] - The stock's performance is adversely affected by high valuation concerns and Bitcoin's volatility, making it sensitive to the broader crypto-market downturn [2][6] Valuation Concerns - Strategy's forward 12-month price-to-sales ratio stands at 99.25X, which is substantially higher than the industry average of 2.92X, indicating significant overvaluation [4] - Key peers like Riot Platforms, CleanSpark, and Coinbase trade at much lower multiples, further highlighting Strategy's stretched valuation [4] Bitcoin Accumulation Strategy - As of October 26, 2025, Strategy holds approximately 640,808 BTC valued at nearly $71 billion, representing one of the largest corporate Bitcoin positions globally [8] - The company has generated a 26% BTC yield and nearly $12.9 billion in Bitcoin-related gains YTD, with a full-year BTC yield target of 30% for 2025 [8] Capital Raising Capacity - In Q3, Strategy raised approximately $5.1 billion in net proceeds through various equity-based financing programs, enhancing its liquidity for Bitcoin acquisitions [9] - From October 1 to October 26, the company generated an additional $89.5 million in net proceeds, demonstrating consistent capital inflows [10] Software Business Growth - Strategy's software revenues rose 10.9% in Q3, driven by increased demand for analytics solutions and customer adoption [11] - Subscription services surged 65.4% year over year, indicating a shift towards recurring, high-margin revenues, which enhances revenue stability [12] Earnings Guidance - Strategy reaffirmed its full-year outlook, projecting $80 per share for 2025, with the Zacks Consensus Estimate for 2025 earnings at $78.04 per share, a significant improvement from a loss of $15.73 per share over the past 30 days [16]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Renowned economist Peter Schiff dismissed Strategy Inc. (NASDAQ:MSTR) as nothing more than a “highly leveraged” Bitcoin (CRYPTO: BTC) bet on Sunday, arguing against its inclusion in global equity benchmarks. Strategy Not A ‘Real Operating Business,’ Says Schiff In an X post, Schiff highlighted last week’s report by JPMorgan analysts that the company risks delisting from major equity indices, such as the M ...

Group 1 - The world's largest corporate holder of Bitcoin, Strategy (formerly MicroStrategy), is facing significant challenges due to the ongoing crypto market crash, impacting both institutional and retail investors [1] - Short-seller Jim Chanos has closed his short positions on MSTR, citing a decline in the multiple-to-net-asset-value (mNAV) from 2.5x in December 2024 to 1.16x currently, with expectations that it may eventually reach 1.0x [2][3] - JPMorgan has warned that leading equity indices, including the MSCI USA Index, may delist Strategy due to its digital asset treasury model, which could affect its eligibility for traditional stock indexes [4] Group 2 - Michael Saylor, co-founder and executive chairman of MicroStrategy, maintains that index classification does not affect the company's operations or self-perception, despite Wall Street's negative view [5] - Institutional trust in Strategy as a Bitcoin proxy has been declining, with major asset managers trimming their holdings by $5.38 billion in Q3 2025 [6][7] - Institutional holdings in MSTR decreased from $36.32 billion at the end of Q2 to $30.94 billion at the close of Q3, representing a drop of approximately 15% [7]

Core Viewpoint - The recent decline in Bitcoin prices, from approximately $125,000 to around $84,000, is attributed to a complex interplay of factors beyond just a typical market correction, including macroeconomic conditions and significant changes in the cryptocurrency ecosystem driven by companies like Strategy Inc. [2][4] Group 1: Bitcoin Price Movement - Bitcoin reached a historical high of approximately $125,000 on October 6, 2025, before experiencing a decline to about $84,000 by late November, marking a maximum drawdown of nearly 30% [2][4] - The decline is characterized as a typical "high position correction," influenced by cooling interest rate expectations, overall risk asset declines, and a shift from net inflows to net outflows in ETF investments [4][30] Group 2: Strategy Inc. and Its Bitcoin Holdings - Strategy Inc., formerly known as MicroStrategy, has transformed from a software company into a significant holder of Bitcoin, with a total of 649,870 Bitcoins acquired at a total cost of approximately $48.37 billion, averaging $74,433 per Bitcoin [5][8] - The current estimated market value of Strategy's Bitcoin holdings is between $54 billion and $56 billion, representing about 3% of the global Bitcoin supply [8] - Bitcoin constitutes approximately 75% to 80% of Strategy's total assets, indicating a shift towards being a Bitcoin treasury rather than a software company [8][12] Group 3: MSCI's Impact on Strategy Inc. - MSCI has initiated a consultation regarding how to classify companies with significant digital asset holdings, suggesting that companies with over 50% of their total assets in digital assets should be treated as investment funds rather than operating companies [16][22] - The consultation period ends on December 31, 2025, with a decision expected to take effect on January 15, 2026, potentially leading to the exclusion of such companies from mainstream stock indices [17][20] - If Strategy is removed from major indices, passive funds tracking MSCI could be forced to sell approximately $2.8 billion worth of Strategy stock, with total potential sell pressure reaching around $8.8 billion if other index providers follow suit [23][24] Group 4: Market Reactions and Valuation Changes - Following MSCI's announcement, the market has begun to react, with Strategy's market-to-net-asset-value (mNAV) ratio dropping from a peak of 2.5 to approximately 1.1, indicating a significant reduction in the premium investors are willing to pay [29][30] - The decline in mNAV suggests that the previous cycle of using high premiums to issue new shares for Bitcoin purchases has been disrupted, leading to a more traditional and costly approach to financing [29][30]

Tom Lee: Insufficient Crypto Liquidity Forces Institutional Hedging Flows Into StrategyIn a CNBC interview on November 21, the host highlighted Strategy's 50% decline over the past three months and its 65% drop from the July peak, questioning how closely its selloff is tied to Bitcoin's downturn. Bitmine Chairman Tom Lee explained that institutions holding multi-billion-dollar Bitcoin long positions are unable to effectively hedge through crypto derivatives or CME futures. As a result, Strategy's highly liq ...

Analysts at Bitcoin For Corporations have accused JP Morgan Chase of causing the October 10 crypto market crash, citing a 42-day-old document that preceded the $19 billion liquidation cascade. Adrian, an analyst at Bitcoin For Corporations, said the Oct 10 crash feels manufactured. He pointed to a JPMorgan investor note warning that MicroStrategy (now Strategy) risked being dropped from the MSCI USA and Nasdaq 100 indexes, estimating $2.8 billion in outflows for the largest Bitcoin corporate holder. “Th ...