Strategy’s stock continued its sharp decline on Monday as Bitcoin gave up its gains for the year and the company pressed ahead with another major crypto purchase. The sell-off has wiped out billions of dollars in market value, and technical signals suggest the pain may not be over.
Shares of Strategy (MSTR) fell to around $160, a steep drop from their all-time high of $542 and a far cry from the 2025 peak of $455. The stock has been sliding for weeks, tracking Bitcoin’s recent weakness and raising concerns among investors about the risks tied to the company’s aggressive crypto strategy.
In its latest filing, Strategy revealed that it bought 2,932 Bitcoin last week for $254 million, paying an average price of $90,000 per coin. With this purchase, the company’s total Bitcoin holdings climbed to 712,647 coins, now valued at more than $62 billion. That stash represents over 3.3% of Bitcoin’s entire supply, making Strategy one of the largest holders in the world.
But the pace of buying is raising eyebrows. Strategy continues to accumulate Bitcoin even as its market net asset value, or mNAV, has slipped below 1. In the past, the company avoided issuing new shares when mNAV was below 1.2. This time, however, it is funding purchases by selling more stock — a move that dilutes existing shareholders.
The impact of that dilution is already clear. Strategy’s outstanding shares have surged from under 80 million in 2021 to about 300 million today, a dramatic increase that has weighed on the stock price.
Bitcoin’s recent pullback adds another layer of risk. The cryptocurrency dropped to around $87,000 on Monday, wiping out all the gains it had made earlier in the week. ETF outflows have picked up, and chart patterns suggest more downside could be ahead. Analysts point to a bearish flag formation — a sharp drop followed by a narrow trading range — often seen as a signal that another leg lower may follow.
A deeper Bitcoin slump would likely hit Strategy hard. In a recent note, the company disclosed that it posted a massive $17 billion loss in the fourth quarter, largely tied to crypto-related holdings and market swings.
From a technical standpoint, MSTR’s chart looks fragile. On the daily timeframe, the stock has broken below the key support level near $228, which marked its lowest point in March last year. It is now trading beneath all major moving averages and continues to trace out a bearish flag pattern.
With momentum still pointing downward, traders are increasingly eyeing the psychological $100 level as the next major target. Reaching that mark would mean another 40% drop from current prices — and a stark reminder of how tightly Strategy’s fortunes are tied to the volatile world of Bitcoin.
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