Strategy has expanded its Bitcoin holdings despite growing concerns about its future inclusion in major stock market indexes. The company purchased another 267 Bitcoin for $22.1 million while spending significantly more on preferred-share repurchases. Its latest financial moves come amid fears that an MSCI exclusion could trigger billions of dollars in institutional selling.
Bitcoin holdings reach new record
Between October 12 and 18, Strategy acquired 267 Bitcoin at an average price of $82,900 per coin, according to its Monday filing. The purchase increased its total holdings to 848,517 BTC, acquired for approximately $64.02 billion at an average cost of $75,446.
Funding came primarily from selling 140,872 MSTR shares, supplemented by $100,000 in cash. Executive Chairman Michael Saylor hinted at another purchase on Sunday, posting, “We found room for more orange.” A similar message preceded the previous week’s acquisition of 250 Bitcoin for $21.5 million.
Beyond cryptocurrency purchases, Strategy repurchased 1.94 million STRC preferred shares for $193.1 million. Its board subsequently increased the digital credit securities buyback programme from $2 billion to $3 billion, leaving $1.16 billion available. Cash holdings included $4.83 billion in reserves and another $447.3 million in additional funds.
MSCI decision threatens Strategy shares
The purchases followed MSCI’s decision to revise its index eligibility rules for companies holding substantial cryptocurrency assets. JPMorgan estimates that Strategy’s potential exclusion could trigger approximately $2.8 billion in passive investment outflows. A final list of affected companies is expected in three weeks.
MSTR shares dropped 9.5% on Friday before recovering approximately 2% during Monday’s premarket trading. Technical indicators suggest resistance around $149.71 and $152.83, while support sits near $135.
Despite the uncertainty, CryptoQuant CEO Ki Young Ju believes the exclusion risk is already reflected in Strategy’s share price. Saylor described MSCI’s decision as disappointing but maintained the company’s Bitcoin accumulation strategy.
