Shares of Strategy Inc. (NASDAQ: MSTR) have dropped by 43% YTD, with a significant decline in the last month due to its shift to a Bitcoin treasury model, raising concerns about potential MSCI delisting and volatility from crypto exposure. Short interest in MSTR has surged, but some see opportunity in its dual nature.

Strategy has acquired over 600,000 BTC using leveraged models, highlighting risks of crypto volatility, but retaining its software business offers a unique buffer. Investors see MSTR as having asymmetric upside potential compared to BTC, potentially outperforming during crypto upcycles with its dual focus.

Concerns about potential MSCI delisting impacting MSTR have caused volatility, but it won’t fundamentally affect Strategy’s Bitcoin strategy or software business. Establishing a $1.44 billion reserve to support dividends provides reassurance for cautious investors despite ongoing risks associated with crypto space.

Despite potential delisting issues, analysts believe MSTR could nearly triple in value again, presenting an opportunity for investors willing to endure short-term volatility. The focus on Bitcoin and recent price declines may offer a buying opportunity for those who believe in the macro trajectory of BTC and Strategy’s unique approach.

Read more at Nasdaq: The Contrarian Case for MSTR Amid MSCI Delisting Debacle