Strategy (née MicroStrategy) (NASDAQ:MSTR) is having a bad day. As of this moment, Strategy is trading down almost 15% for the day, hovering around $109. To put this in perspective, Strategy traded at over $430 per share last year, so the company has created significant value destruction.
Strategy is best known as a Bitcoin proxy firm, as most of its value is derived from its Bitcoin holdings.
It has been estimated that once Bitcoin drops below $76,000, the company would be underwater, given its average purchase cost is around that level.
Currently, Bitcoin is on a bear run, seemingly determined to plunge in price. Much of the decline is driven by corporates and institutions that leveraged BTC to purchase it and are now looking to cut their losses. Bitcoin is now trading under $65,000 $62,500, down over 22% 25.5% in the past week and well below its 52-week high.
Strategy CEO Michael Saylor, the strategist behind the Bitcoin bet, posted on X earlier today, “HODL,” indicating his intent to hold the line.
He posted on February 1st that they were buying more Bitcoin:
“Strategy has acquired 855 BTC for ~$75.3 million at ~$87,974 per bitcoin. As of 2/1/2026, we hodl 713,502 $BTC acquired for ~$54.26 billion at ~$76,052 per Bitcoin.”
Perhaps, Strategy should have waited.