Strategy (MSTR) (formerly known as MicroStrategy) is having one of its roughest stretches in years. The stock is down almost 60% over the past twelve months and more than 40% year-to-date. Shares that traded near $300 in October now sit closer to $170. The drop has sparked loud calls that the company’s Bitcoin experiment is falling apart.
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A broader look at the numbers tells a very different story. Strategy’s Bitcoin stack remains profitable by double digits, and the stock’s long-term gains still beat Apple (AAPL) and Microsoft (MSFT) by wide margins.
Strategy Stays in Profit on Its Bitcoin Holdings
BitcoinTreasuries data shows that Strategy acquired its Bitcoin at an average cost of $74,430. With Bitcoin trading around $86,000, the treasury remains up about 16%. The short-term volatility is painful, but the core thesis is still intact.
Over the past five years, Strategy stock has risen by more than 500%. Apple gained roughly 130% in that window and Microsoft gained about 120%. Even the shorter two-year period shows Strategy up 226%, again beating Apple and Microsoft.
Hedge Traders Keep Shorting Strategy to Offset Crypto Exposure
The recent slump appears tied to how big investors hedge their crypto positions rather than any flaw in the company’s Bitcoin strategy. BitMine chairman Tom Lee broke it down in a CNBC interview, and his explanation is driving a lot of the current narrative.
“Someone can use MicroStrategy’s options chain, which is so liquid, to hedge all of their crypto,” he said. “The only convenient way to hedge someone’s long is to short MicroStrategy or buy puts.”
This pressure has turned the stock into a shock absorber for broader crypto anxiety. Shorts pile on when the market gets nervous, which can push Strategy lower even when Bitcoin is holding steady.
Saylor Doubles Down as Strategy Adds Another 8,178 BTC
Despite the turbulence, chairman Michael Saylor is not changing course. He posted on X that he “won’t back down,” which is a message that matches the company’s latest move.
On November 17, Strategy bought another 8,178 Bitcoin worth $835.6 million. The pace of buying jumped sharply from earlier weekly purchases in the 400 to 500 BTC range. The company now holds 649,870 Bitcoin valued near $56 billion.
Digital Asset Treasuries Lose Steam as Liquidity Tightens
The pressure on Strategy is happening during a broader slowdown in digital asset treasury inflows. Market maker Wintermute pointed out that liquidity from stablecoins, ETFs and corporate treasuries has flattened out. This was a major driver of weakness across the market.
DefiLlama data shows treasury inflows fell from nearly $11 billion in September to about $2 billion in October after a $20 billion liquidation event. November has slowed even further. Inflows this month are only about $500 million, a 75% drop from October.
The liquidity drought is hurting most corporate treasury names. Strategy remains one of the few still sitting on large profits from its holdings.
Is Strategy a Good Stock to Buy?
Turning to TipRanks, analyst data shows Wall Street remains firmly optimistic about Strategy despite the stock’s slide and the volatility in Bitcoin. 14 analysts have weighed in over the past three months, and the consensus rating sits at Strong Buy. 12 analysts call the stock a Buy, two say to Hold, and none recommend a Sell.
The average 12-month MSTR price target comes in at $524.08, which implies roughly 207% upside from the recent close.
See more MSTR analyst ratings
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