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(Seoul=Yonhap Infomax) Jang Won Lee Senior Reporter = Strategy (NASDAQ: MSTR), the largest corporate holder of Bitcoin, has temporarily suspended its Bitcoin buying activities for the first time in several weeks, citing heightened volatility in the cryptocurrency market.
According to CoinMarketCap on the 25th (U.S. local time), Strategy typically announces its Bitcoin purchases every Monday, but remained silent this week.
Lance Vitanza, analyst at TD Cowen, explained that Strategy has halted its at-the-money (ATM) equity offering program and has not made additional Bitcoin purchases.
Analysts view the pause in purchases as a result of strategic planning related to the accounting period, rather than a fundamental shift in the company’s overall strategy.
Similar patterns of purchase suspension were observed in early October, coinciding with the end of previous quarters.
Bitcoin prices, which hit an all-time high of $126,000 last month, have since declined steadily, falling to $82,175 last week.
This week, Bitcoin rebounded and traded at $87,624.
Meanwhile, major index providers including MSCI are reportedly reconsidering whether to classify digital asset holding companies (DATs) like Strategy as traditional technology firms or as investment funds.
Critics argue that since the majority of Strategy’s revenue comes from its Bitcoin holding strategy rather than its software business, and its share price is almost entirely correlated with Bitcoin’s price, the company may not meet the criteria for inclusion as a ‘technology company’ in major indices.
JPMorgan has warned that if this skepticism materializes and Strategy is excluded from key MSCI indices, it could trigger passive outflows worth billions of dollars.
In response, TD Cowen’s Vitanza emphasized, “Strategy is a listed operating company with a $500 million software business and a unique financial strategy that utilizes Bitcoin as productive capital,” distinguishing it from investment funds.
He further noted that index providers like MSCI are supposed to passively reflect the overall market, and that actively deciding whether to classify Strategy as a technology company or an investment fund could create confusion in the market.
jang73@yna.co.kr
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