Spend another 1 billion dollars to buy Bitcoin! If MSCI is eliminated on January 15, Strategy (MSTR.US) may be the biggest passive sell-off in history

The Zhitong Finance App learned that Strategy (MSTR.US), owned by Michael Saylor (Michael Saylor), spent nearly 1 billion US dollars to buy Bitcoin for the second week in a row, and the “digital asset vault” originator continued to grow stronger due to falling cryptocurrency prices. According to regulatory documents submitted on Monday, Strategy spent $980.3 million to buy Bitcoin between December 8 and 14, the largest weekly purchase volume since July, and increased its holdings of more than 10,000 bitcoins for the second week in a row — the first time since January.

The main source of capital for the latest round of acquisitions was an increase in the company's Class A common stock on the market. In response, critics point out that continuing to issue new shares will dilute existing shareholders' equity and weaken the high premium level of the company's stock price compared to its current Bitcoin holdings of about US$59 billion. Notably, the Tysons Point, Virginia-based company also provided additional funding for the acquisition by selling three of the four types of perpetual preferred shares.

Strategy's stock price closed down more than 8% to $162.08 in New York on Monday; Bitcoin fell 3.7% to $85,171, then rebounded above $86,000 in early Asian trading, still down about 30% from its all-time high of $126,000 in early October.

“My company was built for Bitcoin supremacists,” Saylor said on Monday. Only people who believe Bitcoin will win and that it can rise 30% every year will buy my stock.”

Although the market previously speculated that Strategy might be removed from the key index, NASDAQ 100 decided to keep the company after last Friday's annual restructuring, effectively relieving potential immediate selling pressure. Currently, the company's common stock price is a premium of about 1.1 times its corporate value.

Notably, last week Strategy publicly called on MSCI to drop a controversial proposal to remove digital asset treasury companies that “account for more than half of total assets” from the MSCI global stock index.

In an official letter to the MSCI Index Committee, Strategy focused on warning that the proposal, if passed, could trigger an “extremely harmful” chain reaction in the market. MSCI said the final decision will be officially announced on January 15.