Strategy’s stock has experienced a steep decline, shedding nearly 50% of its value since its peak in November 2024. Despite this downturn, the company continues its aggressive Bitcoin accumulation strategy, even as the broader cryptocurrency market faces turbulence.
On Monday, Strategy’s stock dropped another 17%, closing at $239.27. This marks a sharp fall from its November high of $473.83, a decline largely driven by Bitcoin’s recent struggles. According to Bloomberg, the company’s stock had initially surged faster than Bitcoin itself, fueled by optimism that former President Trump would establish a strategic Bitcoin reserve. However, investor sentiment soured following an executive order clarifying that the reserve would consist solely of government-seized Bitcoin, with no additional purchases planned beyond budget-neutral strategies.
Both Bitcoin and Strategy faced additional pressure due to a broader market shift away from risk assets amid macroeconomic uncertainty. Trump’s ongoing trade war with Canada, Mexico, and China has added to the volatility, contributing to Bitcoin’s 4% drop to around $80,000.
Strategy’s Unwavering Bitcoin Accumulation
Despite its falling stock price and Bitcoin’s struggle to hold key support levels, Strategy remains committed to expanding its Bitcoin holdings. The company recently announced plans to raise $2.1 billion through the sale of its Class A strike preferred stock, intending to use the funds to purchase more Bitcoin. This is part of its ambitious “21/21 roadmap,” led by Executive Chairman Michael Saylor, which aims to raise $42 billion for Bitcoin investments.
In its latest acquisition, Strategy purchased 20,356 BTC for nearly $2 billion at an average price of $97,514 per Bitcoin, even as its stock continued to decline. With this addition, the company now holds 499,096 BTC, acquired at an average price of $66,357 per Bitcoin, amounting to a total investment of approximately $33.1 billion. At the current BTC price of $80,381, Strategy’s Bitcoin holdings are valued at around $40 billion, reflecting a 21% unrealized gain.
Market Sentiment and Analyst Projections
While some investors remain skeptical of Saylor’s continued Bitcoin purchases in the current climate, analysts maintain a positive outlook for Strategy. Bloomberg reports that all eleven financial analysts surveyed recommend buying the company’s stock, with expectations that it could surpass its previous peak of $540.
With an unwavering commitment to Bitcoin accumulation and a long-term vision for cryptocurrency adoption, Strategy continues to position itself as a major institutional player in the crypto space. Whether the company’s strategy will ultimately pay off remains to be seen, but for now, Saylor’s conviction in Bitcoin remains unshaken.
