Despite a brief rise in Strategy’s stock price this week, the stock fell again on Tuesday, continuing a streak of declines over the past few months.
This comes after the company purchased an additional $118 million in Bitcoin, suggesting a lack of confidence among investors in the aggressive accumulation strategy pioneered by founder Michael Saylor.
MSTR falls despite new Bitcoin purchases
Strategy (formerly MicroStrategy) announced on Monday that it had acquired 1,287 Bitcoins, increasing its reserves to 673,783 Bitcoins.
Despite buying at a time when Bitcoin prices briefly rose in response to the conflict between the United States and Venezuela, the company’s stock failed to maintain its momentum.
MSTR stock price. Source: Google Finance.
MSTR stock peaked at $167.24 but quickly fell to a low of $155 before settling at $157. The inability to regain footing even in relatively benign market conditions has reignited questions about investor confidence and long-term sustainability.
It is also a period when the strategy’s overall performance has been steadily declining since mid-2025.
Cash reserves do not eliminate concerns
According to Bloomberg, Strategy had unrealized losses of $17.44 billion in the fourth quarter of last year. Sustained selling pressure caused the company’s stock price to decline by nearly 50% throughout 2025.
The company has since sold common stock to free up cash reserves and recently increased its cash reserves by $62 million to $2.25 billion, along with the purchase of Bitcoin.
Nevertheless, investors remained concerned that Strategy would eventually have to sell some of its Bitcoin if prices fell further. This concern is no longer rhetorical.
In late November, Chief Executive Officer Von Leh acknowledged for the first time that the company could sell its holdings under certain crisis conditions. His announcement marked a significant departure from Saylor’s long-held mantra of “never sell.”
As 2026 begins, the outlook remains bleak.
Strategy received a sense of relief on Tuesday after MSCI announced it would not remove digital asset government bonds from its index in February, but the fate of bitcoin prices remains uncertain.
If another sharp economic downturn occurs, your strategy will inevitably be affected. Moreover, continued increases in Bitcoin exposure could amplify the impact and further erode investor confidence.
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