Strategy, formerly known as MicroStrategy, has expressed strong opposition to a proposal by the Morgan Stanley Capital International (MSCI) to exclude digital asset treasury companies (DATs) from its indexes. Calls For Fair Treatment Of Digital Asset Companies In a recent letter signed by Michael Saylor and the firm’s CEO Phong Le, Strategy highlighted its support for MSCI’s efforts to establish consistent eligibility criteria across its indices. However, the company criticized the proposed threshold for excluding firms with more than 50% digital assets on their balance sheets, calling it “misguided.” The company argued that this measure could have negative implications not only for Strategy’s operations but also for the broader cryptocurrency market. Related Reading: Expert Declares Bitcoin Has Reached Midpoint Of Bear Cycle: What Lies Ahead? Strategy emphasized that, unlike traditional investment funds, it maintains the operational agility to adapt its value-creation strategies in tune with the evolving technology underlying Bitcoin. The firm asserts that this flexibility is a critical asset for investors and distinguishes Strategy and other DATs from traditional digital asset investment vehicles. The firm likened its investment approach in a singular asset class to that of real estate investment trusts (REITs) or oil companies, stating that MSCI categorizes those entities correctly without labeling them as investment funds. Therefore, it argued, DATs should be afforded similar treatment. ‘Discriminatory And Arbitrary’ The letter criticized the proposed 50% digital asset threshold as “discriminatory and arbitrary,” suggesting that it imposes uniquely unfavorable conditions on digital asset companies while allowing other industries—like oil, timber, and real estate—to maintain concentrated asset holdings without similar scrutiny. Strategy raised concerns that enforcing this rule would necessitate MSCI to create new methods for measuring balance sheet concentration, complicating the indexing process unnecessarily due to varying accounting principles across asset classes and jurisdictions. Additionally, Strategy elaborated on how the exclusion of DATs could substantially inhibit innovation within the digital asset industry, which the current administration strongly promotes as part of its economic strategy. The company said that digital assets like Bitcoin have the potential to become foundational elements of global financial systems, but the proposed measures could limit access to these transformative technologies for pension plans and 401(k)s, ultimately redirecting billions away from the sector. Strategy cautioned that a hasty exclusion of DATs could be based on misconceptions about their business models, asserting that it reflects a misunderstanding of the nature of these entities. The firm advocated for a more measured approach similar to MSCI’s past handling of the “Communication Services” sector, which underwent extensive consultation and a thorough review before reorganizing traditional telecom, media, and internet companies. Strategy Urges MSCI To Reconsider If implemented, Strategy warns that MSCI’s proposal could lead to the delisting of numerous companies heavily involved in digital assets. JPMorgan analysts estimate that Strategy alone might face liquidations of up to $2.8 billion as a direct consequence of this exclusion. Such a move is also expected to potentially distort market dynamics by incentivizing Bitcoin miners to sell their assets immediately instead of holding them as part of their business strategy. Related Reading: Ethereum Price Climbs Toward $3,300 For The First Time Since November: What’s Driving The Surge? In light of these concerns, Strategy urged MSCI to withdraw the proposal for excluding companies with over 50% digital asset holdings from its Global Investable Market Indexes. The firm asserted that the proposal is rooted in a flawed understanding of DATs and would impose conditions unaligned with national interests, particularly those advocating for the responsible growth of the digital asset space. As of this writing, the company’s stock, trading under the ticker symbol MSTR, is trading at $185. There has been almost no difference since Tuesday’s trading session amid consolidating crypto prices. Featured image from DALL-E, chart from TradingView.com
Ethereum’s momentum in institutional markets just hit a major roadblock. After months of enthusiasm surrounding spot Ethereum exchange-traded funds (ETFs), new data has shown that ETF flows have sunk to their worst monthly total since their launch. The sharp drop reflects a broader cooldown in investor demand, as market volatility and shifting risk appetite weigh on crypto allocations. Will Staking ETFs Emerge To Stabilize Flows? In an X post, a crypto analyst known as Milk Road revealed that the Ethereum ETFs had just printed their worst month on record since launch, which is roughly $1.4 billion in net outflows, the largest single-month withdrawal that ETH has ever encountered. Related Reading: Ethereum Shows Signs Of Accumulation As CVD Strengthens And Correlation Stays Elevated Historically, ETF flow reversals tell more about liquidity pressure in the broader financial system than the long-term fundamentals of the asset itself. When redemptions spike this hard, it’s usually a sign that broader risk sentiment is cracking, not that the asset itself broke. Meanwhile, most investors don’t know that while ETFs were handing back, Digital Asset Treasuries (DATs) stepped in as aggressive buyers. BitMine Immersion Technologies (BMNR) quietly added over 300,000 ETH, worth nearly $800 million at the time, to its treasuries. If the ETF outflow continues to accelerate, the near-term price action will remain choppy as liquidity gets strained at the edges. However, if DAT inflows continue scaling, it builds the foundation for a tighter supply setup into 2026. The tension between this panicked short-term selling pressure and the quiet structural long-term accumulation is the most important dynamic for positioning. Why ETH Reserves Are Becoming Strategic Corporate Assets Crypto trader Bull Theory has noted that last week, BitMine bought an astonishing 138,452 ETH, worth $437.7 million. This single transaction solidifies their position as the largest ETH treasury in the world, holding 3.86 million ETH, valued at $12.4 billion and accounting for 3.2% of the entire circulating supply. Related Reading: Here’s Why Ethereum Emerges As The Global Capital Rails For On-Chain Finance The true source of rising ETH demand is that Wall Street is quietly building on ETH. BlackRock, with $13.5 trillion AUM, has launched tokenized funds on ETH and has filed for a staked ETH ETF. JPMorgan, with $4 trillion, Deutsche Bank, with $1.1 trillion, and Standard Chartered, with $800 billion, are developing tokenization and DeFi infrastructure using ETH and its Layer-2 networks. Institutions like Amundi, HSBC, BNY Mellon, Coinbase, Kraken, and Robinhood are all using ETH rails for custody and settlement or rollup infrastructure for scaling and security. Furthermore, large companies are now holding and staking ETH for yield. BitMine alone expects to generate $400 million+ a year in staking revenue from its position. Tom Lee believes that as staking demand grows and institutions scale tokenization increases, ETH could reach $12,000 in 2026. “A Bitcoin miner is now the largest Ethereum whale, Wall Street is building on ETH, and treasuries are shifting toward yield. ETH is quickly becoming part of the Global Financial System.” Bull Theory noted. Featured image from Freepik, chart from Tradingview.com
A recent report discussed how Digital Asset Treasury (DAT) companies like BitMine and Strategy are sitting on billions of dollars of unrealized profits as Ethereum (ETH) and Bitcoin (BTC) lose crucial support levels. Related Reading: This Altcoin Soars 20% In One Day Following Major Saudi Arabia Partnership DATs To Face ‘Increasing Scrutiny’ On Thursday, crypto insights company 10x Research reported that the largest Ethereum Treasury company, BitMine Immersion Technologies, has a multi-billion-dollar paper loss after the ongoing market correction, which has sent ETH to multi-month lows. “Bitmine is now down more than $1,000 per ETH, implying about $3.7 billion in unrealized losses before even accounting for the hefty NAV [net asset value] premium public-market investors paid on top,” the report highlighted. 10x Research believes that treasury companies will struggle to attract new retail investors amid the current market environment, where existing shareholders are sitting on billions of dollars in losses. When NAV rises, “old” shareholders benefit; when it falls, the damage compounds, a dynamic DAT investors often underestimate. When the premium inevitably shrinks to zero, as it is doing now, investors find themselves trapped in the structure, unable to get out without significant damage, a true Hotel California scenario. Unlike Exchange-Traded Funds (ETFs), Digital Asset Treasuries “layer on complex, opaque, and often hedge-fund-like fee structures that can quietly erode returns,” the report added, noting that many investors are unaware that DATs embedded costs “far exceed” the management fee charged by asset managers like BlackRock on its Bitcoin (BTC) and ETH ETFs. Moreover, 10x Research argued that with the potential introduction of a staked Ethereum ETF by BlackRock, “the economics of DATs are likely to face increasing scrutiny” as retail investors reallocate to a low-cost source of yield. BitMine Remains Confident On Ethereum Despite DAT challenges and ETH’s price action, BitMine has continued to bet on the King of Altcoins. According to Lookonchain data, a new wallet suspected to be linked to the Ethereum-focused treasury company purchased 21,054 ETH, worth around $66.57 million at the time, on Tuesday night. In its November Chairman’s Message, Thomas ‘Tom’ Lee, noted that the crypto market prices have not recovered from the October 10 liquidation event, and “the lingering weakness has the hallmarks of a market maker (or two) suffering from a crippled balance sheet.” BitMine does not believe crypto prices have peaked for this cycle, he added, suggesting that “a crypto cycle top is likely 12-36 months away.” On the contrary, Lee told CNBC News on Monday that the market is “pretty close” to bottoming this week. Crypto suffered from that liquidation event on October 10th, but because the fundamental story is intact and crypto discounts the future, that’s why it’s volatile, but it still looks pretty attractive here. Related Reading: Solana Reclaims $140 As Second Wave Of SOL ETFs Debut – Is A Rebound Coming? Notably, ETH has lost the $3,000 support for the first time since July, retesting the $2,800 area on Thursday morning. However, Lee has affirmed that “Ethereum is undervalued because number one, the story is gaining relative to Bitcoin this year. But two, we’re getting this sort of intrinsic floor because of the value that the assets locked onto the Ethereum blockchain.” As of this writing, Ethereum is trading at $2,840, a 29% decline in the monthly timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
The concept of a price battleground in Bitcoin markets refers to a critical price range where the forces of buying and selling pressure are in a fierce and decisive contest. This is where the outcome is expected to determine BTC’s overall direction and confirm a continuation of a bull market or bear market correction. Why This Zone Will Define Bitcoin’s Next Expansion Phase In an X post, an institutional-grade reporter, Bitcoin Vector, has highlighted that BTC has entered its decisive battleground between $110,000 and $115,000, which could determine the trajectory of the entire cycle. In the past week, spot demand, which is the engine of sustained rallies, was notably weak and capped by the escalating US-China trade tensions. Related Reading: Bitcoin Enters ‘Disbelief Phase’ – Could Short Sellers Face The Next Squeeze? As those tensions eased, that spot demand showed signs of returning, allowing BTC to claw its way back above the critical $110,000 level. Despite recovery back into the battleground, momentum remains negative and flat. Without sustained inflow and spot demand, the bullish structure could fade fast, leaving BTC exposed to another pullback. However, if demand holds and momentum turns up, BTC advances deeper into the battleground. A failure to maintain this range and BTC may risk retreating again and raising the white flag. A full-time crypto trader, Sykodelic, has also offered a highly optimistic prediction that Bitcoin will be back to an All-Time High (ATH) by the end of the month. The market is still in uncertainty and fear, where BTC thrives for its next leg higher. This is the stage of the cycle where disbelief dominates. As a result, traders convince themselves the rally is over, and that’s when BTC starts to move again. By the time BTC approaches its previous highs, traders will finally believe again, which often happens when another long flush clears out late entrants. Technically, BTC price is moving back above the 4-hour 50-period Simple Moving Average (SMA). Each time, Bitcoin successfully retests this level as support, the price continues to expand higher. “I think the worst is behind us,” Sykodelic noted. The Supply Battle That Shapes The Next Cycle The current Bitcoin market is in a supply tug-of-war between two powerful forces. According to the ambassador of MGBX_EN, BitBull, long-term holders (LTHs) have been constantly offloading their coins, while institutions are aggressively absorbing the supply through Spot ETFs and Digital Asset Treasuries (DATs). Related Reading: Bitcoin Profit-Taking Hits $2.25 Billion Following Market Crash — What Could This Mean? Meanwhile, the treasury holdings have quietly surpassed $120 billion, with BTC still dominating the stack. Spot ETFs alone have absorbed tens of thousands of coins this quarter, proving that institutional demand remains strong. However, LTHs are still selling faster than ETFs, and DATs can absorb. Historically, when this kind of accelerated LTH distribution occurs, BTC tends to lose short-term momentum. This is not a bearish setup, but it does imply that the upside remains temporarily capped until the selling pressure fades. Thus, institutions are buying the strength, not the bottoms. Ultimately, the next major breakout hinges on when long-term holders stop distributing and return to accumulation mode. Featured image from Pixabay, chart from Tradingview.com
BitMine’s Chairman, Tom Lee, has shared his perspective on the recent surge of crypto-focused treasury companies and the future of this multi-billion-dollar trend. Related Reading: Ethereum Ready For ‘Rapid Expansion’ As Price Holds $3,900 Support – 30% Rally Coming? Crypto DATs Bubble Already Burst On Thursday, BitMine’s Chairman Thomas “Tom” Lee joined Fortune’s Crypto Playbook Podcast to discuss the surge of Digital Assets Treasury (DAT) companies and why he thinks the bubble surrounding these vehicles may have already burst. Discussing the need for this alternative type to get exposure to crypto assets, Lee argued that DATS “are not just passive vehicles,” and properly executed companies will get capital and be supported by investors. He noted that companies like Strategy and BitMine, the two largest crypto treasuries in the world, both see several billion dollars of daily trading volume, adding that “the two companies combined are 86% of all trading volume for the DATs.” Lee was also asked about the argument that the trend is creating a potential bubble. Fortune’s senior crypto analysts questioned whether the bubble might burst and have a negative impact now that there are hundreds of DATs in the market. He affirmed that the bubble has likely already burst, at least to some capacity, and argued that around 80% of these firms are trading below the net value of their underlying assets. “If that’s not already a bubble burst (…), how would that bubble burst?” Nonetheless, BitMine’s chair explained that instead of questioning if a bubble has burst, he prefers asking if the market has become discerning, which he thinks it already has. BitMine, Not ‘Just’ A DAT? Lee argued that, while other crypto treasuries have not been creators of shareholder value, BitMine is “not just a DAT,” but also the largest holder of Ethereum (ETH) in the world. Notably, BitMine is a Bitcoin and Ethereum Network Company with a focus on accumulating crypto for long-term investment. The company aims to own 5% of Ethereum’s total supply, currently holding 3.03 million ETH tokens, or over 2.5% of the total supply. According to Lee, this gives BitMine multiple roles, including providing a significant amount of security to the Ethereum network. Based on these roles, he considers the company is “essentially a liaison between how Wall Street views future upgrades to Ethereum, to the community.” “So we’re not just a DAT. We’re becoming, you know, one of the important voices within Ethereum, and that really was our goal. You know, that’s why, when BitMine was created,” he said. Adding to his argument, Lee has previously asserted that the company is confident that the two “Supercycle investing narratives remain AI and crypto,” which will “play out over decades.” Related Reading: Bitcoin (BTC) ‘Uptober’ Rally On Pause Until This Level Is Reclaimed As a result, he considers that “Ethereum remains the premier choice given its high reliability and 100% uptime.” During the Podcast, BitMine’s chairman reaffirmed this stance, stating: “The tokenization of everything else, (…), is in the quadrillions. You know, especially as AI moves towards micro payments, which need to happen on the blockchain. That to me is a bigger opportunity, and (…) Ethereum is where a lot of this is going to be built. (…) So to me, there’s still an exponential opportunity in owning ETH over Bitcoin,” Lee concluded. Featured Image from Unsplash.com, Chart from TradingView.com