"Strategy ( NASDAQ:MSTR ) pioneered the Bitcoin ( ) treasury company strategy that once drove mutual gains. The company bought Bitcoin, which often boosted the cryptocurrency's price and, in turn, lifted Strategy's stock. Similarly, any unrelated jump in Bitcoin's price would also lead to Strategy share gains. However, this dynamic has weakened. Bitcoin's price has declined 27% from its October 2025 peak of over $126,000, but Strategy's shares have fared worse , dropping more than 64% from their peak."
"Bitcoin has encountered significant headwinds and is trading around $90,200 today, down from recent highs. Proponents argue it serves as a store of value - it is called "digital gold" - offering protection against inflation and economic uncertainty. However, market behavior is increasingly challenging this view. Gold prices have risen sharply over increased geopolitical tensions, while Bitcoin has declined ."
Strategy's model of holding Bitcoin to lift both the cryptocurrency and its stock has weakened as Bitcoin fell 27% from its October 2025 peak while Strategy shares plunged over 64% from their high. The company disclosed a $2.13 billion purchase of 22,305 Bitcoin even as its shares dropped nearly 7% intraday, reflecting diminished investor enthusiasm. Bitcoin trades near $90,200 amid headwinds, while gold has surged on geopolitical tensions. Critics argue Bitcoin behaves as a risk asset rather than a safe haven and note potential confiscation risks. Recent purchases were funded by $1.83 billion in common stock and $294.3 million in perpetual preferred equity, increasing dilution pressure on shareholders.
Read at 24/7 Wall St.
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