Michael Saylor’s Strategy Inc. (formerly MicroStrategy) has long acted as the biggest institutional buyer of Bitcoin.
However, as 2025 ends, the conversation around the company has shifted.
Bitcoin has fallen from its October peak of $126,000 to about $88,000, and Strategy Inc. has paused its once-relentless buying spree.
This change has made investors nervous and raised fears that the company might be forced to sell its massive 671,268 BTC treasury, worth roughly $58 billion.
MSTR declining stock performance
As Bitcoin loses momentum, discussions about Saylor and Strategy Inc. have exploded online.
With the company holding over 3% of all Bitcoin [BTC], any sign of weakness is seen as a major risk, and MSTR’s 65% slide since July, from ~$456 to ~$158, has only intensified fears that the once-powerful “Bitcoin premium” is fading.
But despite the panic, Strategy Inc.’s financial setup is telling a different story.
The company uses long-term debt instead of short-term loans and has built a large cash reserve.
It started with $1.44 billion and later increased this to more than $2.1 billion, so it can survive downturns without selling any Bitcoin.
While social media spreads “liquidation” rumors, the balance sheet shows that Saylor is not close to being forced out of his position.
When was the fear shot?
That said, the climate of fear peaked in early December, when prediction markets signaled a 61% chance that MSCI would delist MicroStrategy.
If this turned out to be true, such a move would trigger billions of dollars in forced selling from passive funds.
Online critics embraced the news, driven by frustration and a clear desire to see the company fail, largely because they distrust Michael Saylor’s aggressive Bitcoin strategy.
However, extreme negativity often signals a classic market bottom. History shows that when panic becomes one-sided and less committed investors exit, prices often begin to reverse.
Current data indicates this shift is already happening. Public sentiment toward Saylor, which turned extremely hostile in mid-November, has started to stabilize in recent weeks.
The main red flag
However, a bigger issue now extends beyond Strategy Inc. because the entire Digital Asset Treasury (DAT) sector faces pressure.
The top 100 BTC-focused companies hold more than 1 million BTC, showing how far Saylor’s model has spread.
But this concentration also makes them targets, as MSCI is reportedly considering excluding companies that keep more than half their assets in Bitcoin.
If MSCI implements this change, it could raise these companies’ borrowing costs and cut them off from the $15 trillion passive index market.
Analysts warn that MicroStrategy alone could face $2.8 billion to $9 billion in forced outflows if an exclusion happens.
However, because this remains hypothetical, the market may be overstating the threat to Strategy Inc.
In the end, the company’s strong reserves, long-term debt structure, and the broader institutional shift toward Bitcoin suggest that the current fear could mark a turning point, rather than the end of the Saylor era.
Final Thoughts
- When traders openly root for collapse and prediction markets flash doom, markets often sit near emotional and directional inflection points.
- The 65% stock drop signals stress, but not a broken balance sheet, especially with debt maturities pushed years into the future.
