BEARISH 📉 : Strategy’s Bitcoin Bet Deepens Losses Amid Market Decline

Strategy, formerly MicroStrategy, is under pressure following Bitcoin's sharp sell-off. Despite this, the company increased its Bitcoin holdings by acquiring an additional 855 BTC at an average price of $87,974 per token, totaling approximately $75.3 million.

Key Points

The acquisition occurred during a downturn, with Bitcoin prices falling below Strategy's average purchase price of $76,052 to $74,500, raising concerns about potential losses.
MSTR shares dropped 8% on Monday as Bitcoin prices fell, with the company's total Bitcoin holdings valued at approximately $53.1 billion at BTC's lowest point since April 2024.
A rebound in Bitcoin prices to around $79,000 temporarily boosted the valuation of Strategy's holdings beyond $55 billion.
Strategy's stock has declined 48% in 2025, making it the worst performer in the Nasdaq 100, compared to Charter Communications, which fell 39%.
The company will release its Q4 2025 results soon, with expectations of modest revenue decline but improved profitability.
By January 2026, Strategy's Bitcoin holdings reached approximately 712,647 BTC, up from 640,808 in October 2025, increasing exposure to Bitcoin price fluctuations.
MSTR's recent share performance highlights risks associated with its strategy, having fallen 43.4% over three months compared to a 4.3% gain in the broader Finance sector.
Other Bitcoin-exposed companies like Riot Platforms, CleanSpark, and Coinbase Global also saw declines but not as severe as Strategy's.

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