The world’s largest Bitcoin (BTC) treasury company has been on the move again. Strategy Inc. (Nasdaq: MSTR) – the company formerly known as MicroStrategy – has shifted tens of thousands of BTC, worth billions of dollars, off Coinbase and into a new institutional custodian.

For traders who watch whale wallets and ticker symbols like a hawk, those numbers sound alarming. But on-chain data and third-party analysis suggest that Michael Saylor’s firm is restructuring custody, not dumping Bitcoin. At the same time, Strategy is facing a wave of pressure from short-sellers, index providers and large Wall Street asset managers who are rethinking their exposure to this Bitcoin-heavy stock.

From Software Company to the Top Bitcoin Treasury in the World

Strategy started life as MicroStrategy, a business-intelligence and analytics software company. That changed dramatically in 2020 when co-founder and executive chairman Michael Saylor began redirecting excess cash – and later, debt and equity proceeds – into Bitcoin.

Over just a few years, the firm transformed from an enterprise software vendor into the largest corporate BTC holder on the planet. According to recent disclosures and on-chain intelligence, Strategy now controls around 649,870 BTC, valued at over $58 billion at current prices. The company even rebranded from MicroStrategy to Strategy to reflect its new identity as a Bitcoin-first treasury and software company.

Because of this massive stash, MSTR has become a popular high-beta proxy for Bitcoin. When BTC rallies, MSTR often moves even more aggressively – and the same is true in a downturn.

Short Sellers, Index Risk and Big Money Trimming Their Stakes

Strategy’s aggressive Bitcoin play has not gone unnoticed on Wall Street, and not everyone is a fan. Legendary short-seller Jim Chanos has publicly confirmed that he is short MSTR, betting that the market may be mispricing the risk embedded in Strategy’s leveraged Bitcoin model.

At the same time, JPMorgan has warned that major equity indices – including the MSCI USA Index – could decide to remove Strategy because its balance sheet functions more like a Bitcoin fund than a traditional operating company. Index removal wouldn’t change Strategy’s day-to-day business, but it would matter for funds and ETFs that are required to track those indices and hold their constituents.

Saylor has pushed back on this narrative, insisting that Strategy is not a fund and that potential index changes do not affect how the company operates or how it views its long-term Bitcoin strategy.

Meanwhile, several large institutional shareholders have already started to pare back their exposure. Filings show that firms such as Capital International, The Vanguard Group, and BlackRock trimmed their MSTR positions in the third quarter of 2025. Whether this is simple risk management after a volatile run or a deeper loss of confidence, the message is clear: even among big believers in crypto-related assets, Strategy is not a low-stress holding.

Arkham: Strategy Has Moved $5B+ in BTC – But It’s Not a Sell-Off

The latest jolt came from on-chain intelligence firm Arkham Intelligence. Over the last two months, Arkham tracked Strategy moving “Bitcoin worth billions” out of wallets associated with Coinbase, its long-time custodian.

The key detail: Arkham says this is custody diversification, not a mass liquidation. In total, Strategy has shifted 58,390 BTC – roughly $5 billion worth at recent prices – into Fidelity Custody.

Fidelity uses an omnibus custody system. That means:

• Client assets are pooled together in shared on-chain addresses.
• Strategy’s BTC is mixed with other Fidelity clients’ Bitcoin inside those custody wallets.
• On-chain, some of Strategy’s holdings may now appear under a “Fidelity” entity rather than clearly labeled Strategy wallets.

From the outside, this can make it look like Strategy’s stash has shrunk or that coins are “disappearing,” when in reality they’ve just moved to a new custodian structure that hides them inside a larger pool.

For long-term holders, the main takeaway is that no sale has been reported. The company still holds its enormous stack of Bitcoin; it’s just spreading custody across more than one heavyweight institutional provider.

Why Would Strategy Split Its Bitcoin Between Coinbase and Fidelity?

Moving more than 58,000 BTC is not something a public company does casually. There are several strategic reasons why Saylor’s firm might shift part of its holdings from Coinbase to Fidelity:

• Counterparty risk management: Relying on a single custodian concentrates operational and regulatory risk. Using multiple providers spreads that risk across institutions and jurisdictions.
• Security and redundancy: Each custodian has its own security model, insurance coverage, and incident response processes. Diversifying across custodians can reduce the impact of any single point of failure.
• Regulatory and audit flexibility: Some auditors or regulators may prefer specific custody arrangements; others may want segregated pools for collateral and financing. Using multiple custodians offers more options.
• Negotiating leverage: When billions in BTC are at stake, large clients can negotiate pricing and service levels. Maintaining relationships with more than one custodian may strengthen Strategy’s bargaining position.

For retail traders staring at an on-chain dashboard, all of that nuance is easy to miss. But for a corporate Bitcoin treasury of this size, custody architecture is part of the core strategy, not a sign that the company is abandoning Bitcoin.

Market Snapshot: MSTR and Bitcoin During the Shake-Up

Despite all the noise, Strategy’s stock has been holding relatively steady in the very short term. On November 28, 2025 – a Black Friday session with abbreviated trading hours – MSTR closed at $177.18, up about 0.88% on the day.

Bitcoin, by contrast, continues to trade 24/7, unaffected by holiday schedules. Around the same time, BTC was changing hands near $90,917.79, down roughly 0.55% over the prior 24 hours. The combination of a sliding Bitcoin price and heightened volatility has amplified concerns about leveraged players in the ecosystem – and Strategy is at the very center of that conversation.

What This Means for Bitcoin Holders vs. MSTR Shareholders

For everyday investors, it’s important to distinguish between:

• Owning Bitcoin directly (in your own wallet or via a simple spot product), and
• Owning shares of Strategy (MSTR), which are effectively a leveraged, corporate-wrapped BTC play.

If you hold or are considering Bitcoin itself

Strategy’s custody moves are a reminder that large institutions are deeply embedded in the BTC ecosystem – and that they treat Bitcoin as long-term treasury capital, not just a speculative trade. The Arkham data suggests Strategy is rearranging where its coins sit, not abandoning its thesis.

For long-term Bitcoin holders, the bigger questions remain:

• Are more high-quality institutions adopting BTC as a reserve asset?
• Are they holding through volatility, or capitulating?
• Is infrastructure (custody, regulation, market structure) improving over time?

If you hold or trade MSTR shares

Strategy stock is another story. As a shareholder, you’re exposed to:

• Bitcoin price risk – the core of the Strategy story.
• Leverage and financing risk – from the debt and structured products used to buy BTC.
• Equity and index risk – including potential MSCI removal and shifts in institutional ownership.
• Short interest and sentiment – with high-profile bears like Jim Chanos betting against the stock.

That mix can make MSTR more volatile than Bitcoin itself. If BTC falls sharply, the combination of leverage, index flows and short-selling can magnify the downside in Strategy’s stock.

If you choose to trade or invest in MSTR, it’s wise to:

• Use position sizes that reflect the stock’s high volatility.
• Avoid layering excessive leverage on top of an already leveraged vehicle.
• Understand that corporate decisions (like custody shifts) can move the stock even when Bitcoin is flat.

How to Approach Bitcoin Safely as an Individual Investor

Watching a company move $5 billion+ in Bitcoin between custodians can be both fascinating and intimidating. But you don’t need billions to take a thoughtful, disciplined approach to crypto.

If you’re still building your foundation, start with the basics:

• Choose a reputable exchange and understand its security model.
• Learn the difference between hot wallets, cold wallets and custodial vs. non-custodial storage.
• Decide in advance how much of your net worth you’re comfortable putting into such a volatile asset.

These beginner-friendly guides on CoinSellDesign.com can help you get started the right way:

• How to Open a Coinbase Account and Start Trading Cryptocurrency (Beginner’s Guide)
• How to Safely Store Your Cryptocurrency: Wallet Types Explained
• What Is DeFi and How Does It Work? (Beginner’s Guide)

As Michael Saylor’s Strategy battles short-sellers, index committees and nervous institutions, the long-term Bitcoin story will continue to be written on-chain and in boardrooms. For individual investors, the edge comes from staying informed, managing risk and focusing on a time horizon long enough to ride out the inevitable volatility.