Strategy Stock Drops Sharply, but Michael Saylor Stands Firm on Bitcoin Strategy

• Strategy (MSTR) stock has fallen nearly 60% in the past year.
• Despite the drop, Strategy’s Bitcoin holdings remain profitable with a 16% gain.
• Over five years, Strategy stock is still up more than 500%, outperforming major tech giants.
• Investors may be shorting Strategy as a way to hedge crypto exposure.
• Strategy recently purchased 8,178 BTC, raising its total holdings to 649,870 BTC.

Strategy is experiencing a difficult year in the stock market, with many investors questioning whether its large Bitcoin-focused strategy is beginning to break down. The share price has fallen sharply in recent months, creating the impression that the company’s bold Bitcoin bet may have reached its limit. But when looking beyond the short-term chart, the broader picture reveals a very different story.

According to Google Finance data, Strategy stock has dropped almost 60% over the last twelve months and more than 40% since the beginning of the year. The stock was trading around $300 in October but has now fallen toward $170. This led to speculation that the company’s Bitcoin model has been “exposed.” However, the company’s Bitcoin position remains profitable, and its long-term stock performance still surpasses many of the world’s largest technology companies.

Data from BitcoinTreasuries.NET shows that Strategy acquired Bitcoin at an average price of around $74,430. With BTC currently trading near $86,000, the company still holds a profit of about 16% on its Bitcoin purchases. Over a longer five-year period, Strategy’s stock has surged more than 500%, far outpacing Apple and Microsoft, which posted gains of 130% and 120% during the same period. Even over the past two years, Strategy has delivered stronger performance, rising more than 220%, while Apple and Microsoft gained only 43% and 25%.

Analysts suggest that the current decline in Strategy’s share price may be influenced by broader market behavior rather than the company’s strategy itself. In an interview with CNBC, BitMine chairman Tom Lee explained that Strategy has become an easy and liquid tool for hedging crypto exposure. Because the company’s stock options are widely used, many investors short Strategy as a way to manage volatility in the crypto market. This means Strategy can absorb pressure even when Bitcoin fundamentals remain strong.

Kyle Rodda, a senior market analyst at Capital.com, said the biggest potential risk for Strategy is a sharp decline in Bitcoin’s price that could force the company to sell its holdings. Such a situation could hurt both the stock and the broader Bitcoin market. However, he also noted that this scenario is still distant. Rodda added that holding Bitcoin may be safer in the long run than holding shares of a company that depends heavily on Bitcoin’s performance, emphasizing that “one Bitcoin will always be one Bitcoin.”

Despite the falling share price, chairman Michael Saylor remains confident. He recently posted on X that he “won’t back down,” reinforcing his long-standing belief in Bitcoin as the superior long-term asset. Just days earlier, the company revealed a substantial purchase of 8,178 BTC worth more than $835 million. This marks one of its biggest acquisitions, significantly larger than previous weekly purchases. The recent buy brings Strategy’s total Bitcoin holdings to 649,870 BTC, worth nearly $56 billion at current prices.

This development comes as digital asset treasuries face a slowdown in inflows across the crypto market. Market-maker Wintermute pointed out that liquidity from stablecoins, ETFs, and digital asset treasuries has weakened in recent months. DefiLlama data shows inflows into digital asset treasuries dropped sharply in October after $20 billion worth of positions were liquidated. The inflows fell from almost $11 billion in September to only $2 billion in October, and November numbers are even lower, suggesting a sustained decline.

Despite market turbulence, Strategy’s long-term commitment to Bitcoin remains unchanged. The company continues to accumulate BTC even as traditional liquidity sources weaken, reinforcing its belief that Bitcoin will outperform other assets over time.

Final Thought

Strategy’s short-term stock decline has raised concerns, but the company’s long-term performance and profitable Bitcoin holdings tell a much stronger story. As Saylor continues doubling down on Bitcoin, Strategy remains one of the most visible examples of long-term conviction in digital assets — even as the broader market experiences volatility.