Julian Hosp, founder of Cake DeFi, said the Singapore-based platform reported an index delisting probability and a major financial reporting loss for Strategy, which could create market turbulence for cryptocurrency participants.
“The next 4 weeks will get super ugly for $MSTR holders and with that for #bitcoin investors,” said Hosp. “Jan 15th: very likely MSCI delisting. Feb 4th: one of the largest reported losses by a company in earnings call. Take up the braze position. 2026 will start off ugly.”
According to an X post by Hosp, anticipated challenges for Strategy investors are tied to specific events. The update specifies a high likelihood of MSCI index removal on January 15 and substantial earnings deficits announced on February 4. It recommends readiness for market downturns affecting stock and digital asset holders.
Cake DeFi provides decentralized finance services from its Singapore headquarters under the oversight of the Monetary Authority for digital payment tokens. The platform facilitates yield generation on cryptocurrencies through secure protocols accessible to retail users. This setup contributes to Southeast Asia’s blockchain adoption by offering compliant tools for asset management.
Corporate treasuries holding Bitcoin encounter amplified risks from leverage and regulatory changes impacting stock valuations. Strategy represents a prominent example with its extensive holdings subject to index criteria and accounting standards. Global investors assess these factors for broader implications on cryptocurrency market stability.
Hosp established Cake DeFi after founding TenX and achieving exits in the fintech industry. He transitioned from medicine and professional kitesurfing to focus on blockchain entrepreneurship. Hosp serves as chief investment officer for his family office while advancing AI-integrated financial strategies.
