TL;DR
- MicroStrategy pauses weekly Bitcoin purchases amid MSCI index concerns and recent BTC pullback.
- Weekly issuance of BTC-backed credit instruments jumps from $3-4 million to nearly $20 million in November, led by the floating-rate STRC instrument.
- Institutional interest in Bitcoin as collateral grows, showing confidence despite BTC being down over 30% from its all-time high.
MicroStrategy Inc., led by Michael Saylor, temporarily halts its weekly Bitcoin acquisitions as the company navigates potential MSCI index exclusion and a sharp Bitcoin retracement. Holding 649,870 BTC valued at roughly $56 billion with an average cost of $74,433 per coin, Saylor emphasizes a rising trend in BTC-backed credit, reflecting sustained institutional confidence in Bitcoin despite recent market volatility. Analysts note that these instruments have increasingly attracted hedge funds and family offices seeking flexible exposure to Bitcoin without direct purchases, indicating broader acceptance of BTC as collateral.
No Weekly Purchases Amid Index Pressure
For the first time since early October, MicroStrategy did not announce a new Bitcoin purchase. This pause comes as MSCI prepares digital-asset rules that could exclude firms with more than 50% crypto exposure. With MicroStrategy at 77% exposure, potential forced index outflows are a key concern. Meanwhile, MSTR shares trade about 70% below their all-time highs, and the stock’s ratio to net asset value sits barely above 1, highlighting market scrutiny on its balance-sheet strategy.
Saylor Highlights Bitcoin-Backed Credit Growth
Responding to critics focused on leverage and liquidity, Saylor shared a chart of “Bitcoin-Backed Credit Weekly Volume.” The data shows issuance of instruments including STRD, STRF, STRK, and STRC climbing from $3-4 million in mid-September to nearly $20 million by late November. The floating-rate STRC instrument accounted for more than $10.5 million in the final week. These numbers indicate that institutions remain comfortable using Bitcoin as collateral, even with BTC down more than 30% from its $126,198 peak.
Implications For MicroStrategy And BTC
The surge in BTC-backed credit challenges claims that MicroStrategy faces financial strain. The company’s leverage stays around 15%, and it raised $20 billion this year via preferred-share instruments. Saylor describes Bitcoin’s volatility as “vitality” and essential for high performance. Market watchers now focus on whether MicroStrategy will resume weekly Bitcoin buys as BTC trades near $85,757 and MSTR shares rose 1.6% early Monday. Analysts continue to highlight the growing role of BTC as a mainstream corporate finance tool, not just a store of value.
