Major financial institutions have started to reduce their exposure to MicroStrategy. New filings show that several big investors quietly cut more than $5.4 billion from their MicroStrategy (MSTR) holdings last quarter.
What surprised many traders is that this selling happened while Bitcoin stayed strong above $100K.
According to recent filings, major institutional managers have recently sold about 14.8% of their Strategy (MSTR) shares. From the end of Q2 to the end of Q3 2025, their total MSTR holdings dropped by about $5.38 billion, falling from $36.32 billion to $30.94 billion
Major asset managers, including Capital Group, Vanguard, BlackRock, and Fidelity, each cut around or more than $1 billion worth of positions.
However, this reduction in share wasn’t just for profit taking, as they were trying to lower their risk, even though Bitcoin’s price was still high.
For years, buying Strategy MSTR was one of the easiest ways to get exposure to Bitcoin. Since Michael Saylor kept buying more and more BTC, many funds treated the stock like a “Bitcoin with extra power” trade.
But now that trend is slowing down.
More people now prefer to buy Spot Bitcoin ETFs or hold Bitcoin directly, instead of depending on a company that takes on heavy debt to buy more BTC.
Adding to the concern, recent announcements say that MSTR could be removed from the Nasdaq 100 and the MSCI USA indexes starting January 2026.
If this happens, many passive funds will be forced to sell their MSTR shares. One estimate says this forced selling could reach $2.8 billion, and if other indexes follow, it could go up to $8 billion.
Strategy’s stock has been under a lot of pressure lately. The recent pullback in the crypto market pushed MSTR down 44% in just one month.
Eventually, TipRanks’ AI analyst Ivy Interfayce lowered the price target for MSTR from $214 to $183. This updated target shows only 7.3% possible growth from where the stock is today, which signals caution.
In contrast, many Wall Street analysts still believe MSTR could climb much higher. In fact, their average price target suggests a massive 200% upside, showing that the market remains divided on what comes next.
Major funds are reducing risk and shifting from MSTR to direct Bitcoin ETFs, preferring a simpler investment without the company’s debt. Potential index removal is also a key concern.
Analysts project MSTR could be removed from the Nasdaq 100 and other key indexes in early 2026, which may trigger billions in forced selling by passive funds.
Institutional investors sold over $5.4 billion of MicroStrategy shares last quarter, despite a strong Bitcoin price, indicating a strategic shift away from the stock.
This depends on your strategy. Institutions are selling to de-risk and use ETFs, but some analysts remain bullish. Consider your view on MSTR’s debt and its role as a Bitcoin proxy.
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