Bitcoin’s Crash Spells Trouble For Strategy: 10-Month Low Stings Below Average Purchase Price
Bitcoin’s (BTC) sharp promote‑off has intensified stress on Strategy, the corporate previously often called MicroStrategy, even because it continues to develop its already large cryptocurrency holdings. On Monday, the agency disclosed one other BTC buy at a time when costs had been sliding to ranges not seen in virtually a 12 months.
Strategy Adds Bitcoin During Market Sell‑Off
According to a securities filing launched on Monday, Strategy acquired a further 855 Bitcoin over the prior seven days, paying a mean worth of about $87,974 per token. The transaction amounted to roughly $75.3 million and additional elevated the corporate’s publicity to Bitcoin.
The timing of the acquisition, nevertheless, coincided with a steep downturn within the broader crypto market. Bitcoin fell beneath Strategy’s common acquisition value towards $74,500, including to investor unease.
That worth sat barely beneath Strategy’s reported common buy worth of $76,052 per Bitcoin, elevating considerations that the corporate’s sizable holdings may transfer underwater if the decline deepens.
Market response was swift. MSTR fell 8% on Monday as Bitcoin slid beneath that common value degree. When Bitcoin briefly sank to its lowest level since April 2024, the worth of Strategy’s complete Bitcoin holdings stood at roughly $53.1 billion.
A subsequent rebound towards round $79,000 lifted the valuation of the corporate’s Bitcoin position past $55 billion, providing some reduction however little readability on close to‑time period path.
Worst In The Nasdaq 100
So far, Strategy’s shares have suffered a steep decline. The inventory is down 48% in 2025, making it the worst performer within the Nasdaq 100 index. For comparability, the second‑worst inventory within the index, Charter Communications, has fallen 39% over the identical interval, underscoring the dimensions of Strategy’s underperformance.
Amid these challenges, Strategy can be scheduled to launch its fourth‑quarter 2025 outcomes on Thursday. Wall Street expectations recommend modest high‑line stress however a pointy enchancment in profitability.
The Zacks Consensus Estimate requires fourth‑quarter income of $119.6 million, representing a 0.91% decline from the identical interval a 12 months earlier. Earnings, nevertheless, are projected at $46.02 per share, unchanged over the previous month and a dramatic turnaround from a lack of $3.20 per share reported within the prior‑12 months quarter.
Analysts anticipate the corporate’s fourth‑quarter efficiency to mirror continued monetary momentum, pushed largely by Bitcoin‑related gains and disciplined capital allocation.
By the top of January 2026, the agency’s Bitcoin holdings had climbed to roughly 712,647 BTC, up from 640,808 as of Oct. 26, 2025, additional growing its sensitivity to cost actions within the digital asset.
Still, latest share worth efficiency highlights the dangers tied to that technique. Over the previous three months, MSTR has fallen 43.4%, considerably underperforming the broader Finance sector, which gained 4.3% over the identical interval.
The inventory has additionally lagged different Bitcoin‑uncovered firms. During that timeframe, Riot Platforms, CleanSpark and Coinbase Global posted declines of 25.3%, 32.0% and 41.1%, respectively, pointing to widespread weak spot amongst Bitcoin proxy shares, although none have fallen as sharply as Strategy.
Featured picture from OpenArt, chart from TradingView.com
