Bitcoin News Today: Index Exclusion Fears Force MicroStrategy's Bitcoin Pause

MicroStrategy (MSTR) appears to have paused its aggressive Bitcoin accumulation strategy last week, marking the first break in a six-week buying streak. The halt comes amid growing concerns over potential exclusion from major equity indices, a risk that has triggered sharp volatility in both the company's stock and the broader cryptocurrency market. Executive Chairman Michael Saylor, who typically announces Bitcoin purchases on X, remained silent this week, signaling a strategic pause as the firm navigates regulatory and financial headwinds.

The uncertainty stems from MSCI's ongoing review of whether companies with significant digital-asset holdings should remain in traditional equity benchmarks. JPMorgan analysts warned that excluding MicroStrategy from indices like the Nasdaq 100 or MSCI World could trigger up to $8.8 billion in outflows, exacerbating selling pressure and liquidity challenges. The firm's stock, which has fallen over 70% from its peak, trades at a multiple to net asset value (mNAV) just above 1, the lowest level in its current cycle.

Saylor has repeatedly defended MicroStrategy's business model, emphasizing its role as a publicly traded operating company with a $500 million software business and a $7.7 billion Bitcoin-backed credit program. "We create, structure, issue, and operate," he stated on X, contrasting the firm's active approach with passive funds or holding companies according to reports. The company has issued five digital credit securities-$STRK, $STRF, $STRD, $STRC, and $STRE-since 2025, leveraging Bitcoin as collateral to generate yields for institutional and retail investors as data shows.

Despite these efforts, market participants remain skeptical. MSCI's proposed rule , which would exclude firms with digital assets comprising 50% or more of total assets, has already drawn criticism from investors and industry players. Critics argue the move reflects a broader bias against digital-asset treasury (DAT) companies, which use Bitcoin as a core financial asset rather than a speculative holding. Major institutions, including Vanguard, BlackRock, and Fidelity, reportedly cut $5.4 billion in MicroStrategy exposure in Q3, further pressuring the stock.

The potential delisting also raises operational risks for MicroStrategy. JPMorgan noted that roughly $9 billion of its $59 billion market cap is held in passive index-tracking vehicles, making it vulnerable to mechanical sell-offs if excluded. Analysts warn that such a move could damage the firm's credit profile, widen funding spreads, and reduce trading liquidity, compounding its financial challenges.

Meanwhile, Bitcoin's price continues to fluctuate near $86,000, diverging from MicroStrategy's stock performance, which has underperformed the cryptocurrency in recent months. According to its public dashboard, the firm holds 649,870 Bitcoin, with an average cost basis of $74,433 per coin. Saylor's long-term vision-a $1 trillion Bitcoin balance sheet to fuel a digital monetary institution-remains intact, but near-term execution faces headwinds from regulatory scrutiny and market volatility as the firm continues to navigate.

As the crypto and equity markets await MSCI's final decision on January 15, 2026, MicroStrategy's next moves will be closely watched. For now, the pause in Bitcoin accumulation underscores the delicate balance the firm must strike between defending its innovative strategy and addressing investor concerns over sustainability and index inclusion.

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