Vanguard reduces its stake in Strategy by 10%! MSTR stock volatility plummets, is the Bitcoin leverage effect failing?

Asset management giant Vanguard reduced its stake in Michael Saylor's Strategy (formerly MicroStrategy) by 10% in Q2 2025. This move comes as MSTR's stock price has been oscillating within a narrow range around the 360 USD support level for four months, with volatility dropping to historical lows. Analysts warn that the synchronized low volatility of Bitcoin and MSTR has weakened the leverage effect of the stock, compounded by hedge fund-dominated trading, Ethereum treasury, and capital diversion from crypto IPOs, challenging the company's high premium financing ability. Although Saylor hinted at continuing to increase his BTC holdings, the Japanese listed company Metaplanet also increased its position by 775 BTC, and the model of public companies focusing on BTC holdings is facing a deleveraging test.

Asset management giants retreat, key support level under pressure: The asset management giant Vanguard reduced its stake in Strategy (formerly MicroStrategy) led by Michael Saylor by 10% in the second quarter of 2025. This reduction occurred against the backdrop of MSTR stock experiencing narrow fluctuations for several years, with its share price repeatedly testing the key support level of $360 over the past four months. Despite the company continuing to purchase Bitcoin, the stock still showed weakness.

With pure bullish investors withdrawing, hedge funds have become the dominant force in MSTR trading activities, making technical support levels particularly critical. 10x Research analysts point out that although the $360 level has been tested multiple times, it has held firm; however, if it breaks down effectively, it may signal a significant shift in market sentiment.

Volatility disappears, leverage effects and financing advantages diminish: Analysts further pointed out that this institutional reduction in holdings reflects a more severe trend: companies focused on Bitcoin balance sheets are losing their competitive edge. The Ethereum treasury strategy and upcoming crypto IPO projects are starting to attract new funds, diverting capital that was originally aimed at MicroStrategy.

More critically, the simultaneous decline in the volatility of Bitcoin and MSTR stock has significantly weakened the leverage effect of MSTR relative to Bitcoin. This could further limit the company's ability to raise additional funds at a premium valuation. Although the Q2 financial report released by Strategy shows a net income of up to $10 billion, and some analysts believe that its stock price may rebound to $680, the current market is clearly filled with doubt.

According to 10x Research, the stock price of MicroStrategy has fallen to $366 (a monthly decline of 13%), while the stock price of the Japanese listed company Metaplanet has dropped to $1,333 (a monthly decline of 37%). Analysts believe that both companies have lost the premium advantage that once made them ideal proxies for Bitcoin investment.

(Source: 10x Research)

Saylor insists on increasing the position, Metaplanet synchronously adds more: Facing challenges, Strategy Executive Chairman Michael Saylor hinted on August 17th on the X platform that he would continue to purchase Bitcoin. When sharing the company's BTC holdings chart, he captioned it "Insufficient Orange," indicating an intention to increase the position.

Other listed companies such as Metaplanet are also continuing to execute their BTC accumulation plans. Metaplanet announced today that it has purchased an additional 775 BTC, bringing its total holdings to 18,888 BTC, solidifying its position as the leading publicly listed company in Japan for Bitcoin holdings.

Conclusion: Vanguard's reduction of holdings marks a reevaluation of the short-term profit model of Bitcoin leveraged stocks by traditional capital. As the low volatility environment continues to erode MSTR's leverage premium, and new narratives such as the Ether treasury divert institutional funds, Saylor's "public company Bitcoin standard" strategy urgently needs to break through the single position value logic and build a more sustainable capital operation moat. The accelerated layout of followers like Metaplanet highlights that the long-term trend of global listed companies allocating BTC has not changed, but the competitive dimension has quietly upgraded.