Strategy, formerly known as MicroStrategy, the largest public holder of 
Bitcoin (BTC), finds itself at the center of a stormy controversy involving 
JPMorgan as Bitcoin prices continue to struggle. With signs of a potential 
bear market emerging, fresh rumors suggest that one of the world’s largest 
banks allegedly holds a significant short position on Strategy’s stock (MSTR), 
which has plunged 69% from its record high of $543 per share last year. 
Strategy Faces Potential MSCI Exclusion The turmoil escalated last week when 
JPMorgan issued a warning that Strategy might soon be removed from major 
equity indices, specifically the MSCI USA Index. JPMorgan&#8217;s analysts noted 
that the issues facing Strategy extend beyond the recent downturn in 
cryptocurrency prices, which have seen Bitcoin fall more than 30% from its 
all-time highs. As of this writing, Bitcoin is trading around $86,000, while 
the broader crypto market has experienced a staggering $1 trillion decline in 
total market capitalization over the past month. Related Reading: Why XRP 
Price Crash Below $2 Is Not A Problem – $20 Is Still The Target JPMorgan&#8217;s 
analysts indicated that MSCI is considering whether companies with over 50% of 
their total assets in digital currencies should qualify for inclusion in 
traditional equity indices. Given that Strategy&#8217;s balance sheet is heavily 
weighted with Bitcoin, it is at significant risk of exclusion. The analysts 
stated that “MicroStrategy [is] at risk of exclusion from major equity indices 
as the January 15th MSCI decision approaches.” They speculated that removal 
from the MSCI could trigger approximately $2.8 billion in outflows, and if 
other index providers follow MSCI&#8217;s lead, the total could reach as high as 
$8.8 billion. The situation is complicated by market dynamics, particularly 
the timing of JPMorgan&#8217;s bearish note, which coincided with Bitcoin’s weakness 
and MSTR’s decline, all while liquidity was thin and overall sentiment 
fragile. JPMorgan Faces Account Closures Surge According to analysts at the 
Bull Theory, JPMorgan has been noted for timing its market reports—bearing 
down when prices are already weak and striking a more bullish tone near market 
peaks. The analysts have highlighted that share lending for MSTR has 
reportedly increased, allowing brokers to lend shares to short sellers, which 
can exacerbate downward pressure on the stock price. Additionally, there are 
escalating reports of widespread account closures at JPMorgan, with thousands 
claiming to have exited due to perceived manipulation of both MSTR and 
Bitcoin. Related Reading: A Quiet Move In Bitcoin Options Is Starting To Raise 
Big Questions Amid these developments, the fear of a potential short squeeze 
is growing. The analysts believe that if Strategy’s stock were to rally around 
40% to 50%, it could trigger a short squeeze in the bank’s position and spell 
major financial troubles. In response, Michael Saylor, the CEO of Strategy, 
has sought to clarify the company&#8217;s identity, emphasizing that it is not just 
a passive Bitcoin holder. He pointed out that Strategy operates as a software 
business with an active financial strategy, countering the narrative 
circulating around MSCI&#8217;s concerns. As the situation unfolds, several key 
points emerge. The October 10th crash appeared to align with the MSCI 
announcement, coinciding with an already fragile market state. JP Morgan’s 
strategic timing of its bearish insights has amplified existing fears, 
creating further uncertainty as MSCI’s final decision looms. Featured image 
from DALL-E, chart from TradingView.com

JPMorgan’s Alleged Short On Strategy (MSTR): How A 50% Price Jump Could Spell Major Troubles

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Revolut’s $75 billion valuation highlights its rapid global expansion, crypto 
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Digital banking firm Revolut has completed a share sale valuing the company at 
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Cryptocurrency exchanges in Japan would be required to set aside dedicated 
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