Strategy Stock (MSTR) Cut in Half: Accumulates Over 3% of All Bitcoin

Strategy Inc. stock (NASDAQ:MSTR)  is trading at $162.53 this morning, marking a brutal 53% decline over the past twelve months as the company's aggressive Bitcoin treasury strategy faces mounting scrutiny from markets seeking safer havens.

The software-turned-cryptocurrency company now controls 712,647 BTC, representing more than 3.39% of Bitcoin's total 21 million coin supply, yet this unprecedented accumulation has failed to shield shareholders from severe losses as digital asset volatility takes its toll.

The Tysons Corner, Virginia-based firm added another 2,932 Bitcoin to its holdings between January 20 and January 25, spending approximately $264.1 million at an average price of $90,061 per coin. The purchase was funded through the company's at-the-market offering program, which simultaneously raised $264 million through sales of both common and preferred stock during the same period.

This dilutive financing mechanism has become Strategy's primary method for accumulating Bitcoin, effectively converting shareholder equity into cryptocurrency exposure at an accelerating pace.

Strategy's total Bitcoin position now carries an aggregate cost basis of approximately $54.19 billion, translating to an average purchase price of roughly $76,050 per coin. With Bitcoin currently trading at $88,674, the company sits on an unrealized gain on its most recent acquisitions, though the cryptocurrency remains down 15.7% over the past year. This volatility has proven devastating for the stock, which has seen its market capitalization collapse to just $2.5 billion—a figure representing a mere fraction of the company's Bitcoin holdings at current market prices.

The dramatic compression in Strategy's market value relative to its Bitcoin treasury highlights growing concerns about the sustainability of Executive Chairman Michael Saylor's strategy. The company reported a staggering $5.91 billion unrealized loss on digital assets in April 2025 following the adoption of new fair value accounting standards, forcing the full volatility of Bitcoin price movements directly onto the income statement. This accounting treatment has amplified the perceived risk of the equity, particularly as traditional investors rotate toward precious metals and other assets perceived as more stable stores of value.

Strategy's financing activities have intensified dramatically in recent quarters. The company sold $15.3 billion worth of common stock in the final three months of 2024 alone, massively diluting existing shareholders to fund additional Bitcoin purchases. In February 2025, Strategy issued $2 billion of zero-coupon convertible notes due in 2030, securing low-cost financing but adding leverage to an already volatile balance sheet. These capital raises have enabled the company to accumulate Bitcoin at an extraordinary pace, but markets have increasingly questioned whether shareholder value is being created or destroyed in the process.

The removal of Strategy from the S&P 500 index in September 2025 represented a significant blow to institutional credibility. Index exclusion cited concerns over the company's Bitcoin-centric business model and related accounting practices, triggering a 2% immediate decline and cutting off potential inflows from passive index funds and exchange-traded products. The decision underscored growing unease among traditional market participants about classifying Strategy as a conventional equity investment rather than a leveraged Bitcoin derivative.

As Bitcoin trades below $90,000 and Strategy stock languishes at multi-year lows, markets appear to be pricing in substantial execution risk and regulatory uncertainty surrounding the company's unprecedented experiment in corporate treasury management.