Michael Saylor’s Strategy Inc., formerly known as MicroStrategy, has been one of the largest institutional buyers of Bitcoin for years. The company built its reputation by consistently adding BTC to its balance sheet, even during market downturns.
As 2025 comes to an end, that narrative has shifted. Bitcoin has dropped from its October high near $126,000 to around $88,000. At the same time, Strategy Inc. has slowed its Bitcoin purchases, breaking a pattern that investors had grown used to.
This pause has unsettled the market. Some investors now fear that the company could be forced to sell part of its Bitcoin holdings, which total roughly 671,268 BTC and are valued at about $58 billion.
MicroStrategy Stock Weakness Fuels Anxiety
Concerns intensified as Strategy Inc.’s stock price fell sharply. Since July, the stock has declined by about 65 percent, dropping from roughly $456 to around $158.
Because the company holds more than 3 percent of all Bitcoin in circulation, its stock performance is closely tied to Bitcoin sentiment. As the share price fell, online discussions began questioning whether the so called Bitcoin premium attached to the stock was disappearing.
Despite the panic, the company’s financial structure tells a more stable story. Strategy Inc. relies mainly on long term debt rather than short term borrowing. It also maintains a large cash reserve, which started at $1.44 billion and later grew to more than $2.1 billion.
This setup gives the company flexibility. Even in a prolonged downturn, it does not face immediate pressure to sell Bitcoin. While social media speculation has focused on liquidation risk, the balance sheet suggests that such a scenario is not close.
When Fear Reached Its Peak
Market anxiety peaked in early December, when prediction markets suggested a 61 percent chance that MSCI could remove MicroStrategy from certain stock indexes.
If that were to happen, passive investment funds would be forced to sell large amounts of stock, potentially triggering billions of dollars in outflows. Critics quickly amplified this risk, often driven by long standing skepticism toward Michael Saylor’s aggressive Bitcoin strategy.
However, periods of extreme negativity often appear near market turning points. Historically, when sentiment becomes heavily one sided and weaker holders exit, prices tend to stabilize or reverse.
Recent data supports this idea. Public sentiment toward Saylor, which became sharply negative in mid November, has begun to level out in recent weeks.
A Broader Risk Beyond MicroStrategy
The bigger concern may not be limited to Strategy Inc. alone. The entire Digital Asset Treasury sector is under growing pressure. The top 100 Bitcoin focused companies now hold more than one million BTC combined, showing how widely Saylor’s approach has been adopted.
This concentration has also attracted attention from index providers. MSCI is reportedly considering rules that would exclude companies holding more than half of their assets in Bitcoin.
Such a change could increase borrowing costs for these firms and reduce access to the roughly $15 trillion passive index market. Analysts estimate that Strategy Inc. alone could face between $2.8 billion and $9 billion in forced selling if exclusion occurred.
For now, this remains a theoretical risk. Without confirmation, the market may be overstating the immediate danger.
Taken together, Strategy Inc.’s cash reserves, long term debt structure, and continued institutional interest in Bitcoin suggest that current fear may reflect a period of stress rather than a structural collapse. In past cycles, similar conditions have often marked moments of transition rather than final breakdowns.
