Strategy’s Stock Slide Sparks Debate Over Its Bitcoin Roadmap

Strategy’s rough performance this year has led some investors to question whether the company’s bold Bitcoin approach is losing steam. A closer look at its long-term track record shows the company still holding strong gains on its Bitcoin portfolio.

Google Finance figures show Strategy’s stock has dropped nearly 60% over the past twelve months and more than 40% since the start of the year. The share price traded around $300 in October and has fallen to roughly $170. However, the company still remains in profit on its holdings.

From BitcoinTreasuries.NET data, Strategy’s average purchase price sits near $74,430 per coin. With Bitcoin trading around $86,000, the firm retains nearly 16% gains on its accumulated position.

Over the past five years, Strategy’s equity performance has surged more than 500%. For comparison, Apple advanced about 130% in the same period, while Microsoft gained roughly 120%. Even in a shorter two-year span, Strategy rose 226%, beating Apple’s 43% and Microsoft’s 25%.

Why Big Investors Target Strategy for Crypto Hedging

Market participants point to a different driver behind the recent weakness in Strategy’s stock. Large funds increasingly use the company as a tool to manage exposure to Bitcoin, turning it into a convenient outlet for hedging activity.

In a recent CNBC interview, BitMine chairman Tom Lee explained that Strategy’s options market is among the most active in the crypto-equity space. Because of that, traders often short the stock or buy protective options to balance risk from their broader crypto positions. 

This flow has made Strategy a pressure point for wider market sentiment, even when the company’s underlying thesis remains intact.

Chairman Michael Saylor has maintained that the firm is committed to its approach. On Nov. 17, Strategy revealed it had acquired 8,178 more Bitcoin for $835.6 million, a big leap compared with its typical weekly buying range. This brought its holdings to 649,870 Bitcoin, valued at nearly $56 billion.

Digital Asset Treasuries Face Inflow Slowdown

The broader digital-asset landscape is experiencing a pullback in fresh capital, creating additional strain across the market. 

Crypto market-maker Wintermute pointed to stablecoins, ETFs and digital-asset treasuries as the core sources of liquidity. It noted that flows into all three areas have reached a soft patch.

DefiLlama data shows that inflows into digital-asset treasuries fell sharply. The deposits have dropped from nearly $11 billion in September to about $2 billion in October following a wave of $20 billion in crypto liquidations. November has been even weaker, with only about $500 million recorded so far.