JPMorgan Raised Its Strategy Stake 36% Before MSCI Exit

JPMorgan Chase's quarterly 13F, filed Nov. 12, shows it held 848,932 shares of Strategy (MSTR) at Sept. 30, 36% more than the 624,387 it reported for June, according to Coinotag. The stake was worth about $131.3 million on Sept. 30, PANews reports.

Details

Besides the stock, the bank added to its position in the iShares Bitcoin Trust (IBIT): 11,408,930 shares worth roughly $540 million, up 9.6% from the previous quarter. With small holdings in the Grayscale Bitcoin Mini Trust and Bitwise Bitcoin ETF, JPMorgan's spot bitcoin ETF exposure comes to about $549 million.

Bitcoin Magazine's reading of the same filing lists put options on 1,148,500 Strategy shares (about $177.6 million) and call options on 349,500 shares (about $54.1 million). A 13F doesn't state the purpose of positions: options can reflect hedging, client trading or market-making, so they shouldn't be read as a bearish bet.

The data is as of Sept. 30, before MSCI's decision. The index provider is removing Strategy from the MSCI USA index after the close on Nov. 30.

What it means for the market

A 13F is a quarter-end snapshot filed with a delay: it shows how the bank was positioned before the MSCI exit, not its current trades. The larger stock and ETF holdings point to continued interest in bitcoin exposure, while the options suggest part of it was likely hedged.

For more on the index decision, see our MSCI story; the live bitcoin price is in the daily brief.