Strategy’s $64.2 billion Bitcoin investment was approximately $6.85 billion underwater early Saturday after the cryptocurrency fell toward $67,400, while index provider MSCI confirmed that it
Strategy’s $64.2 billion Bitcoin investment was approximately $6.85 billion underwater early Saturday after the cryptocurrency fell toward $67,400, while index provider MSCI confirmed that it would remove the company from its major equity benchmarks at the end of November.
The Michael Saylor-led company holds 850,364 BTC purchased at an average $75,456 each, according to its latest SEC filing. At $67,400 per coin, the treasury is worth approximately $57.3 billion, leaving an unrealized decline of about 10.7% against its aggregate acquisition cost.
The decline follows Strategy’s latest purchase of 1,036 BTC for $81.9 million during the week ended November 8. Those coins were acquired at an average $79,012, above both the company’s overall cost basis and the current market price.
MSCI will delete Strategy’s Class A shares from the MSCI USA Index as part of its November index review, with changes taking effect after the November 30 market close. The removal also affects global benchmarks incorporating US constituents, including MSCI World and MSCI ACWI.
The decision follows new eligibility rules for companies classified as non-operating. The framework examines operating assets and five financial ratios, excluding qualifying businesses that more closely resemble investment vehicles rather than conventional operating companies.
Strategy challenged the classification, arguing that its Bitcoin treasury and digital-credit products constitute an active business. The company estimated that funds tracking MSCI indexes held approximately 13 million MSTR shares, representing 3.1% of shares outstanding and less than one day of average trading volume.
An earlier JPMorgan estimate suggested approximately $2.8 billion in potential selling, although the forecast preceded MSCI’s final methodology and the latest decline in Strategy’s share price.
At Friday’s closing price of approximately $111.62, the 13 million shares identified by Strategy would be worth roughly $1.45 billion. Actual fund outflows will depend on index-tracking exposure and portfolio rebalancing rather than the historical estimate alone.
The market pressure comes as Strategy manages approximately $12.95 billion in preferred equity and $6.71 billion in debt, against roughly $4.9 billion in dollar-denominated assets.
Its $4.77 billion USD Reserve supports preferred-stock dividends and debt interest, while another $146.2 million in USD Cash remains available for broader capital management.
Annual dividend and interest obligations stand near $1.46 billion, giving the company approximately 3.4 years of coverage at the current payment rate. The outstanding preferred equity does not represent an equivalent amount immediately payable from those reserves.
Strategy previously reported $19.53 billion in third-quarter net income, driven largely by $20.91 billion in digital-asset fair-value gains. Those gains were predominantly unrealized and did not produce equivalent cash receipts.
The company has continued managing its capital through equity issuance and preferred-share repurchases. During the week ended November 8, Strategy raised $283.8 million by selling approximately 2.05 million MSTR shares, allocating $81.9 million to Bitcoin purchases, $188.3 million to STRC repurchases and the remaining $13.6 million to USD Cash.
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