MicroStrategy News: 27% of Stategy’s BTC Now Off-Chain, Bullish Signal or Liquidity Risk?

Key Insights:

• According to latest MicroStrategy news, the firm transferred another 11,642 BTC worth $1 billion to Fidelity, bringing its total moved to 177,351 BTC.
• Around 27% of these holdings are now in Fidelity’s omnibus custody, making them no longer traceable on-chain.
• The shift raises questions about reduced visible supply, institutional consolidation, and potential impacts on Bitcoin’s price dynamics.

The latest bitcoin custody reshuffle of MicroStrategy has alarmed investors: roughly a quarter of the company’s massive BTC holdings now sit in opaque, off-chain custody.

Arkham Intelligence reported on Nov. 26, 2025 that MicroStrategy (Nasdaq: MSTR) moved nearly 60,000 coins from Coinbase into Fidelity’s omnibus vault.

With some 427,000 BTC now tracked under a generic “Fidelity Custody” account, roughly 27% of MicroStrategy bitcoin holdings can no longer be directly seen on the blockchain..

The on-chain analytics firm Arkham notes that Fidelity’s omnibus system mixes many clients’ Bitcoin under a single address.

In practical terms, any large sale out of Fidelity could be booked as an internal transfer – escaping the usual on-chain sale signals.

In fact, crypto research outlet DropsTab recently highlighted that “Strategy moved 165,709 BTC into Fidelity’s omnibus pool — the perfect place to sell quietly.”

By blending MicroStrategy’s coins with other holders’, Arkham warns that subsequent off-chain trades (for example via OTC desks inside Fidelity) would leave little on-chain footprint.

In other words, about one-quarter of the $10–12 billion Bitcoin treasury could be unloaded stealthily if the company chose to do so.

MicroStrategy (MSTR) Stock in Focus

These developments come as MSTR stock trades near its lows of the year. After soaring in mid-2025 alongside bitcoin’s rally, MicroStrategy (MSTR) stock price has since collapsed.

As of Dec. 4, 2025, the stock closed around $188.39, down roughly 60% from its September peak near $457. Bitcoin itself is near $92,000 (about 27% below its all-time high).

At today’s prices, the crypto asset remains about 24% above MicroStrategy average purchase cost ($74,436 per coin). Still, the sight of such a large chunk of bitcoin being “taken off-chain” has made traders uneasy.

MicroStrategy News: Off-Chain Play and MSTR Stock

The immediate question on the MicroStrategy transfer news is what this off-chain shift signals. Some market watchers view it as a liquidity concern.

By hiding a sizable portion of its BTC in Fidelity’s pooled custody, MicroStrategy could be laying the groundwork for a stealth liquidation.

According to DropsTab, when bitcoins enter Fidelity’s internal ledger system, “attribution dissolves,” any future sale could be attributed to other omnibus participants.

In this scenario, large buyers (for example, BlackRock’s IBIT or a sovereign wealth fund) could acquire coins directly from MicroStrategy off-chain, and the transaction would never appear as an on-chain transfer.

In practice, Strategy would only need to disclose sales once they become “material” under SEC rules, meaning the market might not learn of a major sale until after it happens.

DropsTab analysts expect a possible gradual “stealth unwind” of 50,000–100,000 BTC in Q4–Q1, which would dramatically increase bitcoin supply.

This interpretation has put MSTR stock holders on edge. If MicroStrategy were to quietly dump tens of thousands of BTC without warning, it could overwhelm spot market liquidity and push down both bitcoin and MSTR prices sharply.

Indeed, many see the Fidelity custody move as a hidden “liquidity test,” a way for MicroStrategy or its backers to exit positions without alerting the market.

For a company that now carries billions in convertible debt and preferred shares, such an off-chain exit strategy could relieve funding pressures at the expense of investors.

Analysts Weigh Risks vs. Rewards

Other analysts urge caution before jumping to bearish conclusions. They point out that not every transfer into Fidelity implies an imminent sale.

In fact, MicroStrategy’s management has repeatedly insisted they have no plan to liquidate their bitcoin. Bitwise CIO Matt Hougan argued that MicroStrategy’s share price dropping below net asset value does not trigger any compulsory bitcoin sell-off.

The company currently holds roughly $1.4 billion in cash, enough to cover well over a year of interest on its debt, and its near-term debt maturities are manageable.

Mr. Hougan notes that founder Michael Saylor, who owns 42% of voting stock, has never sold a single BTC even when MSTR traded at a steep discount in 2022.

In short, he contends MicroStrategy “is not in any danger,” and a so-called “death spiral” is highly unlikely. From this bullish perspective, moving coins to Fidelity might simply be operational housekeeping, ensuring treasury security or optimizing custody – rather than a precursor to dumping.

A Closer Look on the MicroStrategy News

According to MicroStrategy news, its own filings and statements have underscored this view. The company has emphasized its “Bitcoin as primary treasury asset” strategy and regularly raises equity to buy more BTC.

Its Oct. 2025 update shows 640,250 BTC held. One could view entrusting coins to Fidelity, the custodian for large Bitcoin spot ETFs, as prudent.

Some investors might argue that by reducing on-exchange balances, MicroStrategy lowers counterparty risk. Moreover, if large sales were indeed planned, others point out there is still a requirement to report them eventually.

By moving coins off-chain now, MicroStrategy “moved the goal posts” on regulatory disclosure: it only needs to file a Form 8-K once an internal Fidelity sale is material, giving it time to spread out any sales.

For now, MSTR stock remains sensitive to bitcoin’s swings and any news out of MicroStrategy. The stock traded in a range from about $177 to $190 on Dec. 2–3, 2025.

Market participants will watch the Feb. 2026 quarter results closely. As DropsTab observes, that report will implicitly reveal whether the BTC stash of MicroStrategy grew (via new purchases) or shrank (through hidden sales) during Q4.

A larger or flat BTC balance would reassure bulls; any decline without offsetting equity raises could validate the “liquidity risk” thesis.