Strategy Shares Plunge | Decline Exceeds Bitcoin's Downturn in 2025
Edited By
Marko Petrovic
Shares of Strategy (MSTR) have plummeted nearly 50% over the past six months, marking the company's longest downward streak since it began holding bitcoin as a treasury asset back in August 2020. This significant drop has raised eyebrows, especially as it contrasts sharply with the cryptocurrency's performance.
A Shocking Downward Trend
According to crypto analyst Chris Millas, Strategy’s stock has faced continuous losses from July to December 2025. Unlike previous downturns, there have not been any notable recovery months, which is unusual for the stock that usually bounces back after steep declines. Throughout the latter half of 2025, August, October, November, and December all recorded significant dips.
"While there were larger losses before, they were typically followed by quick rebounds. This time is different," noted Millas.
Reflecting on Comments
Reactions on user boards indicate mixed sentiments regarding the company's dire situation. Here are three prominent themes:
Bear Market Concerns: Many users pointed out if this trend continues alongside declining bitcoin prices, shareholders might face further losses. One comment raised the fear, "What happens to Strategy during a long bear market?"
Financial Tactics and Risks: Several commenters discussed potential strategies, advocating for short-selling, with one suggesting, "Use maximum leverage, make sure Strategy goes bankrupt then invest in Bitcoin. It’s free money."
Caution Among Investors: Others expressed apprehension about investing in Strategy, acknowledging the risk. "I actually think there is an opportunity to make a lot of money buying shares. But I’m too scared," one user wrote.
Sentiment Trends
Overall, discussions reveal a negative sentiment toward the future of Strategy amidst ongoing financial instability. Many express hesitation and concern about long positions in the stock, with fears of deeper losses lingering.
Key Takeaways
💸 Strategy’s shares dropped nearly 50% in six months.
🔻 No recovery rallies noted since before mid-2025.
📉 “Seriously, you can be pro-Bitcoin without being pro-Microstrategy,” shared a concerned commentator.
The Bigger Picture
This decline raises critical questions about Strategy's role in the broader crypto ecosystem. It's essential to consider if the company’s struggles may inadvertently affect the wider cryptocurrency market. With voices calling for a reassessment of strategies, will 2026 bring a turnaround or further decline?
The situation remains developing, and investors are left to wonder what the next steps for Strategy will be amidst this turmoil.
What Lies Ahead for Strategy?
Given the steady decline in Strategy's shares, there's a strong chance that without significant changes, the company could face further financial troubles. Experts estimate around a 70% likelihood that if Bitcoin prices continue to fall, Strategy may need to reconsider its treasury strategy. As a potential measure, the company could pivot towards operational efficiency to regain investor confidence, but if the bear market persists, it might lead to more drastic actions such as layoffs or restructuring. Investors may also start weighing their options on selling shares or waiting for a possible recovery, making the next few months critical for Strategy's future.
Drawing Lessons from Unexpected Places
When thinking about Strategy’s current plight, it’s worth recalling the oil crisis of the 1970s. At that time, many companies linked to fossil fuels struggled as prices soared and demand fluctuated unpredictably. Some firms bounced back by innovating their business models, while others faced downfalls. This moment serves as a reminder that resilience can blend with creativity; sometimes, companies must undergo transformation to navigate harsh environments, rather than solely relying on their historical strengths. Just as those oil companies had to rethink their strategies, Strategy faces a similar test, with the need to adapt or risk perceived failure.