Wall Street giants including BlackRock dump MicroStrategy shares

MSTR -3.83% BTC-USD -0.67% BLK +1.01%

The world's largest corporate holder of Bitcoin (BTC), Strategy (Nasdaq: MSTR), formerly MicroStrategy, has been facing a challenging phase of late.

The ongoing crypto market crash has shattered the hopes of both institutional and retail traders invested in digital assets, and even Strategy has not been able to escape the heat.

Related: Michael Saylor responds to JPMorgan’s MSCI delisting warning

MicroStrategy under pressure

First, the legendary short-seller Jim Chanos came down heavily on the company, confirming he was closing his short positions on MSTR due to the declining multiple-to-net-asset-value (mNAV).

It is a premium that calculates how Strategy’s stock price compares to the value of its Bitcoin holdings per share, minus debt and preferred equity.

mNAV has compressed from 2.5x in December 2024 to 1.16x at the time of writing. Chanos said he expected the metric to decline over time and eventually hit 1.0x. What he implied is that the company’s shares will be valued exactly equal to its Bitcoin holdings.

Next, the Wall Street giant JPMorgan warned that leading equity indices, including the Morgan Stanley Capital International (MSCI) USA Index, could delist Strategy. It has less to do with the recent Bitcoin crash and more to do with the broader digital asset treasury (DAT) model pioneered by the likes of Strategy.

MSCI is considering whether companies with more than 50% of their total assets held in digital assets should be eligible for traditional stock indexes, the note said.

Though Strategy founder and executive chairman Michael Saylor contended that index classification has no bearing on how the company views itself or operates and reiterated a long-term commitment to Bitcoin, it has had no bearing on how Wall Street looks at Strategy.

And it seems institutional trust in the Bitcoin proxy had been shrinking long ago.

More News:

• JPMorgan warns of MicroStrategy delisting risk from major equity indices

• Popular crypto company shuts down as Bitcoin crashes

• Popular crypto company files for Chapter 15 bankruptcy as Bitcoin crashes

Wall Street giants trim MicroStrategy shares

Filing shows that the largest asset managers on Wall Street trimmed their holdings in Strategy by $5.38 billion in the third quarter of 2025.

Institutional holdings in MSTR declined from $36.32 billion at the end of Q2 to $30.94 billion at the close of Q3, a drop of approximately 15%.

Capital International, The Vanguard Group, and BlackRock (NYSE: BLK) each shed over $1 million worth of MSTR shares during Q3.

Even JPMorgan Chase (NYSE: JPM) divested of $500 million worth of MSTR shares during the quarter.

The institutional players chose instruments like MSTR to gain indirect exposure to BTC instead of directly investing in the cryptocurrency. Notably, they lowered their holdings in Strategy during a time when Bitcoin had been performing relatively well.

Now that the king coin is facing one of its worst crashes ever, it is likely that these institutions could further trim their holdings in the Bitcoin proxy.

The MSTR stock is down 43% in a month and 57% in a year. It was trading at $170.71 at the time of writing, desperately trying to remain in the green zone.

Bitcoin was exchanging hands at $85,904.64, down 0.95% in the last 24 hours.

Related: BlackRock suffers worst-ever rout as Bitcoin crashes

This story was originally published by TheStreet on Nov 24, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.