MSTR's Bold Bitcoin Bet: What Happens Next Will Shock You! Don't Miss This Insider Scoop!

Strategy Inc. (NASDAQ:MSTR) has emerged as one of the top contenders among software stocks, boasting significant upside potential. Last week, the company made headlines by adding an impressive $1.25 billion worth of Bitcoin to its already substantial holdings, bringing its total to a staggering 687,410 Bitcoins. This aggressive investment strategy in cryptocurrency has garnered both interest and scrutiny, particularly from Morgan Stanley Capital International (MSCI), which had previously discussed the possibility of excluding companies with more than 50% of their assets in cryptocurrencies from its indexes.

In a notable turn of events, on January 7, MSCI announced that it would not proceed with the proposal to remove digital-asset treasury companies from its indexes. Following this announcement, shares of Strategy Inc. experienced a sharp increase, rising by 6.6% in after-hours trading. This decision reflects a broader acceptance of digital assets within established financial frameworks, at least for now.

Nevertheless, MSCI is planning a more comprehensive review regarding the treatment of non-operating companies. The firm noted that its indexes aim to reflect the performance of operating companies while excluding entities primarily engaged in investment activities. An MSCI statement read:

“MSCI has determined at this time not to implement the proposal to exclude digital asset treasury companies from the MSCI Global Investable Market Indexes as part of the February 2026 Index Review.”

Currently, Strategy Inc. is featured on several key indexes, including the MSCI USA, Nasdaq 100, and MSCI World. Analysts at JPMorgan have cautioned that a potential delisting from MSCI's equity indices could lead to billions of dollars in outflows, highlighting the significance of index inclusion for companies like MSTR.

On a different note, financial services firm Citi recently adjusted its price target for Strategy Inc. shares, lowering it from $485 to $325 as of December 21, 2025. Despite this downward adjustment, Citi analyst Peter Christensen maintained a "Buy" rating on the stock, suggesting that even at the revised price, there remains a potential upside of 105.74% from current levels as of January 8.

In addition to its Bitcoin investments, Strategy Inc. operates as a bitcoin treasury company across various regions, including the Middle East, Europe, the United States, and Africa. The company also offers cloud-native, AI-powered enterprise analytics software to its global clientele, indicating a diversified business model that extends beyond cryptocurrency investments.

While the potential for Strategy Inc. remains appealing to investors, it's worth noting that some analysts see greater upside potential in certain AI stocks. These stocks may present lower downside risks, and resources for identifying undervalued opportunities in this sector are increasingly available. For those interested in capitalizing on emerging trends, there are reports highlighting the potential of certain AI stocks that stand to benefit significantly from current economic shifts, including Trump-era tariffs and the growing trend of onshoring.

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In conclusion, Strategy Inc. finds itself at a pivotal moment, balancing its bold cryptocurrency investments with ongoing scrutiny from financial institutions. The recent MSCI decision not to remove digital assets from its indexes could set a positive tone for the future, but investors should remain watchful of broader market trends and the evolving landscape of technology-driven investments.

Disclosure: None. This article is originally published at Insider Monkey.