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Bitcoin News Today: JPMorgan’s Alert Ignites Discussion: Does MicroStrategy Serve as a Stand-In for Bitcoin or Function as a Business Entity?

Bitcoin News Today: JPMorgan’s Alert Ignites Discussion: Does MicroStrategy Serve as a Stand-In for Bitcoin or Function as a Business Entity?

Bitget-RWA2025/11/24 07:56
By:Bitget-RWA

- JPMorgan warns MSCI's potential exclusion of crypto treasury firms like MicroStrategy could trigger $8.8B in passive outflows, sparking market debates over corporate classification. - MicroStrategy CEO Michael Saylor rejects criticism, emphasizing the firm's "Bitcoin-backed operating" model with $500M software revenue and 649,870 BTC holdings. - Bitcoin's $81,500 slump and 23% Coinbase drop highlight institutional unease, while MSTR stock absorbs hedging pressure as crypto investors' proxy. - Analysts sp

MicroStrategy, which holds a massive 650,000 BTC reserve, finds itself at the heart of growing institutional uncertainty as

has cautioned about possible removal from indexes and has dropped to $81,500. , circulated among select clients, cautions that MSCI’s upcoming January decision to potentially exclude companies with large crypto holdings could prompt as much as $8.8 billion in passive fund withdrawals if other index providers follow suit. This has reignited the debate over MicroStrategy’s true nature: Is it a stand-in for a Bitcoin ETF or a unique blend of operating company and structured finance?

Michael Saylor, the company’s founder, has dismissed JPMorgan’s concerns, insisting that MicroStrategy is fundamentally unlike a fund or a holding company.

, “We build, design, issue, and run operations,” describing MicroStrategy as a “Bitcoin-supported operating business” with a $500 million software division. His stance follows a recent , bringing the company’s total to 649,870 BTC as of November 16. This purchase, financed through preferred stock offerings, highlights MicroStrategy’s ongoing commitment to its Bitcoin-focused approach, even as the cryptocurrency experiences its sharpest downturn since April.

The market’s distress is evident.

into losses, while crypto-related stocks such as Coinbase (down 23% this month) and Robinhood (down 21%) show the wider institutional anxiety . Although MicroStrategy’s shares rose 8% in a single day, they are still down 27% for November, partly because the stock is widely used as a hedge by crypto investors. that the limited liquidity in crypto derivatives has led institutional players to short MSTR as a way to balance Bitcoin declines. “MSTR is bearing the brunt of all the hedging activity,” he commented, calling it “the key stock to watch.”

JPMorgan’s alert has also triggered backlash within the Bitcoin community.

have advocated for a boycott of the bank, accusing it of trying to destabilize the crypto sector. —which would exclude companies with more than half their assets in crypto from indexes—could force firms like MicroStrategy to either cut back on holdings or lose access to passive investment flows. Saylor has pushed back against this label, maintaining that MicroStrategy’s business model sets it apart from “passive” crypto investment vehicles .

Experts remain split. Some interpret MSCI’s proposal as a move toward stricter regulation, while others see it as a misunderstanding of how corporations use Bitcoin.

in terms of crypto exposure and could increase short-term market swings as index funds rebalance. For now, MicroStrategy’s aggressive Bitcoin accumulation and its stock’s dual function as both a Bitcoin proxy and a hedging instrument keep it at the forefront of the ongoing debate between crypto and institutional finance.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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