Strategy’s Bitcoin holdings remain in profit, and its long-term stock performance continues to outperform top tech giants despite a sharp decline in share price.
Strategy Stock Faces a Steep Decline
Bitcoin investor Strategy is enduring a turbulent year, raising questions about whether its high-conviction Bitcoin strategy is starting to unravel. Over a one-year chart, the picture looks grim — but the longer-term data tells a very different story.
Google Finance data shows Strategy (MSTR) stock is down nearly 60% over the past year and more than 40% year-to-date. The share price hovered around $300 in October before dropping to roughly $170 at the time of writing.
Despite the slump, the company’s multi-billion-dollar Bitcoin position remains firmly in the green, challenging the narrative that its BTC-centric model has been “exposed.”
Bitcoin Holdings Still in Profit
According to BitcoinTreasuries.NET, Strategy acquired its Bitcoin at an average price of $74,430. With BTC currently trading near $86,000, the company is still sitting on almost 16% gains on its total Bitcoin holdings.
The long-term picture is even more compelling. Over the past five years, Strategy shares have soared more than 500%. In comparison, Apple gained around 130%, while Microsoft rose approximately 120% in the same period.
Even in the past two years, Strategy stock is up 226%, far outpacing Apple’s 43% and Microsoft’s 25%.
Why Investors Are Shorting Strategy
The downward momentum may have less to do with Bitcoin fundamentals and more with how institutional investors hedge crypto exposure.
In an interview with CNBC, BitMine chairman Tom Lee said Strategy has effectively become the simplest way for major investors to hedge Bitcoin positions.
“Someone can use MicroStrategy’s options chain, which is so liquid, to hedge all of their crypto,” he explained. “The only convenient way to hedge someone’s long is to short MicroStrategy or buy puts.”
This has turned Strategy into an unintended “pressure valve” for the crypto market — absorbing short positions, volatility, and market anxiety that may not reflect the company’s long-term Bitcoin thesis.
Analysts Note Risks, but Saylor Doubles Down
Capital.com senior market analyst Kyle Rodda noted one key risk: if Bitcoin prices fall sharply, Strategy could be forced to liquidate part of its holdings, potentially putting additional downward pressure on both BTC and MSTR stock.
“We are probably a long way from this,” Rodda said. “But the risk makes abundantly clear that in the long run, buying MSTR stock is potentially inferior to owning actual Bitcoin.”
He added that while a company can fail, “one Bitcoin will always be worth one Bitcoin.”
Despite the turbulence, Strategy chairman Michael Saylor remains unfazed. In a recent post on X, he declared he “won’t back down.”
On Nov. 17, Strategy announced the acquisition of 8,178 BTC for $835.6 million — a significant increase from previous weekly purchases of 400–500 BTC. This brings total holdings to 649,870 BTC, valued at nearly $56 billion.
Digital Asset Treasuries See Liquidity Slowdown
The pressure on Strategy comes amid a broader decline in digital asset liquidity.
On Nov. 6, market-maker Wintermute identified stablecoins, crypto ETFs, and digital asset treasuries (DATs) as major sources of liquidity — all of which have recently plateaued.
According to DefiLlama, DAT inflows dropped sharply after a $20 billion liquidation event in October. Inflows fell from nearly $11 billion in September to around $2 billion in October — an 80% decline.
November saw further deterioration, with inflows reaching only $500 million as of Monday, marking a 75% drop from the previous month.
Outlook
While Strategy stock is under heavy pressure, its Bitcoin holdings remain profitable and its long-term performance continues to outshine major tech equities. As the crypto market waits for a renewed liquidity cycle, Michael Saylor appears committed to expanding Strategy’s already massive Bitcoin treasury — regardless of market headwinds.
