Strategy is starting to lose its edge in the Bitcoin world as big banks like JPMorgan and Morgan Stanley step into the market with their own Bitcoin-linked products. These new offerings are putting pressure on Strategy’s stock, which has already been trending down for weeks.
Big banks enter the game
JPMorgan and Morgan Stanley recently launched new investment products tied to Bitcoin. These products are linked to Bitcoin ETFs and give institutional investors a chance to benefit from Bitcoin’s upside, while offering some protection if the price drops.
This is a big deal because Strategy has spent years positioning itself as the main corporate way for big investors to get exposure to Bitcoin. By loading its balance sheet with BTC, Strategy became a kind of “Bitcoin proxy stock” for institutions that didn’t want to buy Bitcoin directly.
But now, with major banks offering their own Bitcoin-linked tools, institutions suddenly have more options—options backed by long-established Wall Street giants.
Why Strategy’s stock has been struggling
Strategy’s stock hasn’t been doing well recently. Since mid-October, the price has been sliding and breaking through important support levels. A few things have contributed to this weakness:
- Short-seller pressure:
In May, well-known short-seller Jim Chanos revealed a position that was long Bitcoin but short Strategy’s stock. That kind of trade puts downward pressure on Strategy. - Higher margin requirements:
In July, JPMorgan raised margin requirements for anyone trading Strategy’s stock. This makes it harder for traders to use leverage, which can reduce buying activity and push prices lower. - Scrutiny on similar companies:
Another company, Metaplanet, which follows a similar “Bitcoin on the balance sheet” approach, announced a capital raise that caught the attention of MSCI. The extra scrutiny on companies using this model added more pressure to Strategy.
All of this has fueled talk in the market about whether these events are connected—or at least contributing to the same downward trend.
A changing landscape for Bitcoin investing
For years, Strategy enjoyed being the main public company giving investors direct exposure to Bitcoin. But the arrival of Bitcoin-linked products from large banks changes the playing field. Institutions now have more choices that don’t require buying Strategy’s stock or relying on its treasury strategy.
This shift doesn’t remove Strategy from the picture, but it does weaken its position as the only major corporate gateway to Bitcoin.
With banks stepping in, competition rising, and Strategy’s stock trending lower, the company now faces a new kind of challenge—one that doesn’t come from Bitcoin’s price, but from Wall Street itself.
