- Strategy's stock fell 49% last year, attributed to Bitcoin's weak returns.
- The value of Bitcoins held by Strategy exceeds its market capitalization, raising valuation concerns.
- There is a concern of exclusion from MSCI indices, and investors should be cautious.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
Strategy (formerly MicroStrategy), the publicly listed company that holds the most Bitcoin (BTC) in the world, may face difficulties in the new year.
On the 2nd (Korea time), crypto asset (cryptocurrency) specialist outlet BeInCrypto analyzed Strategy's stock and reported that Strategy's stock fell 49% last year.
The background to Strategy's weakness lies in Bitcoin's poor returns. Bitcoin recorded an annual return of -5.7% last year. As Bitcoin weakened, Strategy, which holds Bitcoin on a large scale, naturally saw its stock fall.
Strategy currently holds 672,497 Bitcoins, which is about 3.2% of Bitcoin's total supply. However, Strategy's market capitalization is about $46 billion, lower than the value of the Bitcoins it holds, about $59 billion, raising concerns about valuation.
There is also the burden of potential exclusion from MSCI indices for Strategy. MSCI announced plans to classify companies whose digital asset holdings exceed 50% of total assets as 'funds', and if Strategy exceeds this threshold it could be excluded from major indices. MSCI's final decision will be announced on January 15.
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