In a dramatic turn of events, Strategy’s (MSTR) stock has dropped by 30% since Michael Saylor, the company’s executive chairman and former CEO, graced the cover of Forbes. Between January 30 and March 10, the shares plummeted from $340.09 to $238.25, with a notable 17% decrease on March 10, coinciding with a broader sell-off in tech stocks. This decline has been attributed to renewed fears of a recession, as highlighted by the Atlanta Fed’s forecast of a -2.4% GDP growth for the first quarter of 2025.
Moreover, the Nasdaq Composite, which includes Strategy, saw a decline of over 4% on the same day as the stock sell-off intensified. CNN’s Fear & Greed index reflected this turmoil, indicating ‘Extreme Fear’ with a score of 16. This environment has unsettled investors, leading to increased scrutiny of companies with exposure to volatile assets like Bitcoin.
Despite these challenges, Strategy remains resolute in its commitment to its Bitcoin acquisition strategy. On March 10, the firm publicly announced plans to raise an additional $21 billion for corporate purposes, with a substantial portion earmarked for acquiring more Bitcoin. Just weeks prior, on February 24, Strategy added 20,356 Bitcoin to its holdings for nearly $2 billion. Notably, while Bitcoin suffered its largest weekly decline recently, Strategy’s Bitcoin investments are reportedly still profitable by approximately 18.9%.
The contrasting opinions regarding Strategy’s aggressive Bitcoin strategy have sparked considerable debate within the cryptocurrency community. On one hand, some investors view the acquisition method as a genius move, betting on Bitcoin’s impressive historical performance that helped elevate it to a $1.56 trillion market cap in just 15 years. On the other hand, critics have described the tactic as reckless, comparing the company’s strategy to a ticking time bomb or even a Ponzi scheme.
Crypto investor Hedgex.eth has vocally criticized the approach, suggesting on social platforms that Saylor’s strategies could cause more harm than good to Bitcoin’s market stability. Similarly, analyst Haralabos Voulgaris warned that future Bitcoin downturns could inevitably become associated with Strategy’s bold moves.
Nevertheless, Strategy’s actions have led to a wave of companies taking similar routes by adding Bitcoin to their corporate treasuries, fueling investor enthusiasm. An impressive case includes Metaplanet, whose shares skyrocketed by 4,800% in just 12 months following the announcement of its own Bitcoin investment strategy.
In closing, the ongoing fluctuations in Strategy’s stock reflect broader market anxieties and underscore the risks associated with significant investments in cryptocurrencies. While the company’s strategic direction has attracted both admirers and detractors, its influence is undeniable, as it continues to invite both interest and skepticism in equal measure.
