The collapse of the Bitcoin "hodl" model! The "big holder" strategy (MSTR.US) has changed from a "belief flywheel" to a liquidity black hole.

Michael Saylor-led Strategy Inc. (MSTR.US) could be considered one of the companies hit hardest by the recent cryptocurrency downturn - now facing very real major risks: Saylor's pride, the Bitcoin treasury model, is basically failing, and it may be excluded from the benchmark indices that have supported its presence in mainstream investment portfolios, especially the Nasdaq 100. With Bitcoin trading prices plummeting over 30% from historic highs, dropping below the important $90,000 mark and entering a bear market, Strategy Inc. (formerly MicroStrategy Inc.), a company once seen by Wall Street as "the most successful investment bank in the history of finance," has suffered even more devastating losses, with its stock price plummeting over 60% since its July peak. In a report this week, analysts from Wall Street giant JPMorgan warned that Strategy, known as "Bitcoin whales" and "Bitcoin shadow stocks," could lose its significant position in indices such as the MSCI USA Index and the Nasdaq 100. If adjustments are made to the MSCI indices, up to $2.8 billion in funds may be forced out, and if other index providers follow suit, outflows could amount to tens of billions of dollars. Data from JPMorgan shows that passive ETF funds linked to the company currently hold nearly $9 billion in market value exposure. With the company's stock price plummeting and market capitalization dropping to around $50 billion, decisions are expected to be made as early as January 15th. For a company that rose by "packaging" cryptocurrency exposure into stock codes, being excluded from benchmark indices not only affects liquidity, it also erodes the institutional credibility promised by this Bitcoin treasury model. Strategy's rise is built on a breakthrough and innovative flywheel strategy: sell stocks, buy Bitcoin, ride the unprecedented bull market of Bitcoin, and repeat the process. At its peak, the company's market value far exceeded the value of its cryptocurrency holdings. But now, this premium has all but disappeared. The company's current market value is only slightly higher than its cryptocurrency reserve value, indicating a rapid waning of investor belief in the "Bitcoin treasury model." "Although active asset managers are not required to follow index adjustments, being removed from major indices will undoubtedly be seen as a negative event by market participants," wrote JPMorgan analysts led by Nikolaos Panigirtzoglou, pointing out significant risks to Strategy's stock assets in terms of liquidity, financing costs, and investment attractiveness. The latest cryptocurrency pullback has affected various investment groups including retail traders, altcoin speculators, and high-leverage mining companies. This is a stark contrast to a few months ago. In September of this year, cryptocurrency bulls heavily bet on Strategy being included in the S&P 500 index soon. Its market value, profitabili...