Strategy’s Bitcoin Advantage Diminishes as Major Banks Target Institutional Investors

As major banks like JPMorgan Chase and Morgan Stanley launch leveraged Bitcoin products, Strategy Inc.'s competitive edge in accumulating Bitcoin as a corporate asset is diminishing. The introduction of these investment offerings is putting pressure on Strategy’s stock and altering the corporate cryptocurrency landscape.

Key Takeaways

JPMorgan and Morgan Stanley are introducing leveraged Bitcoin investment products.
These new offerings create competition for Strategy Inc.'s Bitcoin accumulation business model.
Recent developments have placed pressure on Strategy's stock, leading to a downtrend.
Investors are questioning the timing of these market changes and the implications for corporate Bitcoin holdings.

Strategy’s Bitcoin edge erodes as big banks target institutional demand - 1

Major Banks' Leverage Products Impact Strategy Inc.

Market analysts tracking the corporate cryptocurrency sector are noting that Strategy Inc. is facing heightened competition. JPMorgan Chase and Morgan Stanley have unveiled Bitcoin-linked investment products that include structured notes tied to the iShares Bitcoin Trust ETF. These products offer institutional investors exposure to Bitcoin, allowing for potential gains while incorporating built-in risk management features, such as capped returns and downside buffers.

The launch of these financial products directly competes with Strategy’s established business model of accumulating Bitcoin on its corporate balance sheet. Strategy has gained recognition as a leader in treating Bitcoin as a corporate treasury asset.

Challenges for Strategy's Market Position

Recent events have created significant challenges for Strategy’s standing in the market. In May, short-seller Jim Chanos publicly announced a strategy where he goes long on Bitcoin and short on Strategy, further impacting the company’s outlook. Then, in July, JPMorgan increased margin requirements for trading Strategy stock, which some market observers interpreted as a move to restrict leverage and support potential selling pressure on the stock.

Adding to the scrutiny, Metaplanet, a company with a similar Bitcoin-holding strategy to that of MicroStrategy, announced a capital raise that drew attention from MSCI. The sequence of these events, alongside the establishment of new products by major banks, has led to speculation among some market participants regarding a potential coordinated effort.

"If this hated stock turns, it will be the MOST HATED SQUEEZE." - Prof (@Prof_heist), November 26, 2025.

Since mid-October, Strategy's stock has been on a downward trend, breaking through critical support levels, displaying lower highs, and gaining bearish momentum in recent months. The push by leading financial institutions into Bitcoin-linked products signifies a notable change in the sector, impacting corporate Bitcoin holdings and the landscape of institutional cryptocurrency investment vehicles.