Major financial institutions have begun reducing their exposure to MicroStrategy. New filings reveal that several major investors quietly withdrew more than $5.4 billion from their MicroStrategy (MSTR) holdings last quarter.
What surprised many traders is that these sales occurred while Bitcoin remained strong above $100,000.
Wall Street has dumped $5.4 billion in strategy
According to recent filings, major institutional managers recently sold approximately 14.8% of their Strategy shares (MSTR). From the end of Q2 to the end of Q3 2025their total MSTR holdings decreased by approximately $5.38 billion, from $36.32 billion to $30.94 billion
Major asset managers, including Capital Group, Vanguard, BlackRock and Fidelity, each cut more than $1 billion worth of positions.
However, this share reduction was not just for profit, as they were trying to lower their risk even though the price of Bitcoin was still high.
Why institutions are taking a step back?
For years, buying Strategy MSTR was one of the easiest ways to gain exposure to Bitcoin. As Michael Saylor continued to buy more and more BTC, many funds treated the stock as 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, rather than depending on a company taking on heavy debt to buy more BTC.
Adding to the concerns, recent announcements say MSTR could be removed from the Nasdaq 100 and MSCI USA indexes starting in January 2026.
If this happens, many passive funds will be forced to sell their MSTR shares. One estimate says these forced sales could reach $2.8 billion, and if other indexes follow suit, it could reach $8 billion.
Analysts cut MSTR price target
Strategy’s stock has been under a lot of pressure lately. The recent downturn in the crypto market pushed MSTR down 44% in just one month.
Ultimately, TipRanks’ AI analyst Ivy Interfayce lowered the price target for MSTR from $214 to $183. This updated target only shows a possible growth of 7.3% from the stock’s current position, suggesting caution.
In contrast, many Wall Street analysts still believe the MSTR could rise much higher. In fact, their average price target suggests a massive 200% upside, showing that the market remains divided on what comes next.
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