Morgan Stanley versus Michael Saylor just took an interesting turn.
On Dec. 17, Michael Saylor posted on X an image of himself alongside Strategy CEO Phong Le, standing in front of what appeared to be a Morgan Stanley office.
"Guess the ₿ank," he wrote.
The post surfaced as Saylor's Bitcoin-heavy company found itself in the spotlight amid growing concerns about potential index exclusions.
Recently, at Bitcoin MENA in Abu Dhabi, Saylor hinted at getting into discussions with U.S. banks
Related: The only thing better than Bitcoin is...MSTR?
MSTR faces delisting jitters
Strategy began as a software company founded in 1989, but pivoted aggressively to Bitcoin in 2020 after Saylor embraced the digital asset during the coronavirus pandemic.
Following its latest acquisition, Strategy remains the world's largest corporate Bitcoin holder, with 671,268 BTC worth roughly $60 billion on its balance sheet.
However, that balance sheet does not appeal to everyone.
Strategy's Bitcoin-centric treasury model has come under renewed scrutiny amid a sharp crypto market downturn that saw Bitcoin fall from a peak near $126,000 to around $90,000 within weeks.
Last month, JPMorgan Chase warned that this very model could lead to Strategy's exclusion from major equity indices, including the MSCI USA Index.
The MSCI USA Index, maintained by Morgan Stanley Capital International, is a widely followed benchmark that tracks large- and mid-cap U.S. companies, representing approximately 85% of the U.S. equity market.
MSCI has confirmed it is reviewing whether to exclude public companies whose balance sheets allocate more than 50% of assets to digital assets. If adopted, Strategy could become the first high-profile casualty of such a rule change. Discussions between Strategy and MSCI are ongoing.
Despite the uncertainty with MSCI, Strategy recently retained its position in the Nasdaq 100 Index, which tracks the 100 largest non-financial companies listed on the Nasdaq exchange.
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Balance sheet gets a wake-up call
Soon after concerns intensified, Strategy disclosed on Dec. 1 that it had established a $1.44 billion United States dollar reserve . The reserve, funded through proceeds from an at-the-market equity offering, is intended to support dividend payments on preferred shares and service debt obligations.
Strategy said it aims to maintain sufficient liquidity to cover at least 12 months of dividends, with plans to extend coverage to 24 months or more.
The creation of the USD reserve marked a notable shift toward risk management.
With Strategy's modified net asset value (mNAV) falling to around 1, meaning its equity now trades roughly in line with the value of its Bitcoin holdings, Saylor appears focused on stabilizing the balance sheet.
By maintaining cash reserves while continuing to accumulate Bitcoin, Strategy is insulating itself from short-term volatility while pursuing its long-term ambition of becoming a leading issuer of what Saylor has described as "digital credit."
Morgan Stanley's stance on Bitcoin
Meanwhile, Morgan Stanley has been cautiously expanding exposure toward Bitcoin.
In a November note, the firm recommended that eligible investors allocate up to 4% of portfolios to cryptocurrencies under its "opportunistic growth" framework.
In the same month, data from Structured Products Intelligence showed that Morgan Stanley had sold $104 million in structured notes linked to BlackRock's iShares Bitcoin Trust (IBIT).
Related: Morgan Stanley Clients Hold Nearly $30M In Bitcoin Fund
This story was originally published by TheStreet on Dec 17, 2025, where it first appeared in the Business News section. Add TheStreet as a Preferred Source by clicking here.
