Shares of Strategy are back under pressure after Bitcoin slipped below the $75,000 mark, pushing the company’s massive Bitcoin treasury into an unrealized loss of more than $900 million.
With Strategy’s stock acting as a leveraged proxy for Bitcoin, investors are once again questioning whether MicroStrategy stock now trading under the ticker MSTR has further downside ahead or is approaching a stabilization zone.
Bitcoin drawdown drags Strategy back into the red
Bitcoin’s move below $75,000 has pushed Strategy’s holdings of 712,647 BTC slightly underwater. According to data tracked by Lookonchain, the company’s average Bitcoin purchase price sits near $76,038, leaving the position with an unrealized loss exceeding $900 million following the latest market sell-off.
While the loss remains unrealized, it matters disproportionately for Strategy because of how tightly its equity performance is linked to Bitcoin’s price.
Strategy shares are down roughly 61% over the past six months and were trading near $149.71 at press time. The stock slipped slightly in overnight trading after a 4.5% rebound on Friday, underscoring how fragile sentiment remains after months of sustained selling.
Why Bitcoin price matters more for MSTR than most stocks
Strategy’s sensitivity to Bitcoin is amplified by how it funds its BTC purchases. A January filing with the U.S. Securities and Exchange Commission confirmed the company continues to rely on at-the-market equity sales and other securities issuance to finance its Bitcoin accumulation strategy.
That structure magnifies both upside and downside. When Bitcoin rallies, MSTR often outperforms. When Bitcoin falls, dilution risk rises, and investors reassess how much Bitcoin each share effectively represent often resulting in sharper equity drawdowns.
Despite the current losses, Strategy has shown no indication of altering its approach. Founder Michael Saylor has repeatedly reaffirmed the firm’s long-term conviction in Bitcoin, and analysts note there is no immediate risk of forced selling given the company’s debt structure.
Will MSTR stock fall further from here?
Bitcoin’s ability to hold current levels will likely dictate MSTR’s next major move. A deeper BTC decline could quickly renew pressure on Strategy’s stock if concerns around dilution resurface. Conversely, even modest Bitcoin stabilization could help MSTR form a base after months of heavy selling.
From a technical standpoint, the stock remains weak. MSTR is trading below all major daily moving averages, confirming the broader downtrend. Price is hovering near the lower Bollinger Band, signaling that downside momentum has been strong but may be stretching.
The Bollinger mid-band located around $165–$170 continues to act as firm resistance. Meanwhile, the relative strength index near 40 suggests selling pressure has eased slightly, but momentum has not flipped bullish.
Volatility has also begun to compress. Narrowing Bollinger Bands often precede a sharp directional move, and MSTR is currently holding a short-term support zone between $145 and $150. A decisive daily close below that range would likely expose the stock to a move toward the low $130s.
Bottom line
Until Bitcoin stages a more durable recovery, Strategy’s stock is likely to remain highly volatile. While selling pressure has slowed, the trend remains bearish, and rallies may continue to attract sellers unless MSTR can reclaim key technical levels.
For now, Strategy’s growing unrealized Bitcoin loss keeps MSTR firmly tied to Bitcoin’s next move making it a high-risk, high-beta bet on whether the crypto market has found a floor.
