Stocks Drop Nearly 60%, but Strategy’s Bitcoin Keeps Paying Off: What’s Really Happening?
While Strategy’s stock price continues to plummet in 2025, the company’s Bitcoin accumulation has continued to perform well — creating a paradox where the company’s market value is weakening while its Bitcoin holdings are growing.
🔻 Strategy Stock Plunges Despite Effective Bitcoin Strategy
Over the past 12 months, Strategy’s stock has slid nearly 60%, from $300 to just around $170 — its lowest level since late 2024.
Since the start of 2025 alone, the stock price has fallen more than 40%, even as the company continues to expand its Bitcoin holdings.
As of November 17, 2025, Strategy owns 649,870 BTC, equivalent to about $56 billion with Bitcoin around $86,000.
This amount of BTC was purchased at an average price of $74,430, meaning the company still records about 16% of unrealized profits.
📈 Long-term outperformer: Strategy outperforms the entire Big Tech group
Despite the short-term sell-off, Strategy's long-term performance is surprising:
5 years: +500%
Apple: +130%
Microsoft: +120%
Over the two-year period, Strategy's stock also increased 226%, outperforming both Apple and Microsoft.
This shows that short-term volatility does not change the long-term growth story that Bitcoin brings to the company's treasury strategy.
🛡️ Strategy’s hedging mechanism is creating unexpected volatility for the entire market
BitMine’s Tom Lee points out that Strategy has become the main hedging tool for crypto investors thanks to its large options market and high liquidity.
Investors use Strategy shares to:
sell short to protect their Bitcoin portfolio, or
buy to create a contrarian hedge.
As a result, Strategy shares are caught up in fluctuations that are not directly related to the company’s BTC buying strategy — making it a “pressure valve” for the entire crypto market.
Just as this pressure has not yet cooled, Strategy has accelerated its purchase of 8,178 BTC in just one week — the strongest level ever.
🔍 Premiums Shrink and Treasury Firms Slow Down on Bitcoin Buying
Strategy's stock premium — once a gauge of investor confidence — has shrunk to 1.26, its lowest level since early 2024.
Not just Strategy, the entire Bitcoin treasury industry has slowed:
25% of listed companies holding Bitcoin are trading below NAV
Average daily BTC buying volume by treasury group falls to lowest level since May 2025
Many firms are even forced to sell Bitcoin to meet financial obligations.
⚠️ Big Risk: Risk of being removed from MSCI's global indices
MSCI — the world's leading index provider — is considering reclassifying digital asset treasury businesses.
If Strategy is regrouped, the consequences could be significant:
A wave of passive selling from ETFs and index funds
Estimated outflows of $2.8 billion to $8.8 billion
About $9 billion of Strategy’s market valuation now comes from passive capital — showing the level of risk if MSCI makes an adverse decision.
🪙 Weakening Inflows into Digital Assets: A Key Cause of the Correction
From September to November 2025, inflows into digital asset treasury products plummet:
September: ~$11 billion
October: ~$2 billion
By mid-November: only $500 million
Wintermute argues that liquidity across the entire crypto ecosystem — from stablecoins to ETFs — is “flat,” not indicating strong new inflows.
This contributed to Strategy’s stock decline despite Bitcoin maintaining a long-term uptrend.
🧮 Strategy’s financial advantage: Bitcoin only needs to increase by 1.41% per year
According to the latest documents, Strategy has the ability to:
guarantee dividend payments for 71 years
Bitcoin only needs to increase by at least 1.41% per year to balance its entire dividend obligation
If Bitcoin exceeds this level — which most long-term forecasts say is a certainty — the stock’s return will continue to be supported.
🪙 Rebranding: From MicroStrategy to Strategy
In February 2025, the company changed its name to Strategy, asserting its position as:
“The world’s first Bitcoin Treasury.”
Strategy not only holds BTC, but also issues Bitcoin-collateralized debt products, including:
STRK
STRC tranches
Total issuance value of over $7.7 billion in 2025 alone.
📌 Conclusion: Bitcoin remains the main driver — the stock is just reflecting a temporary disruption
The sharp drop in Strategy stock is not due to a failed Bitcoin strategy.
On the contrary, the company's BTC holdings are still generating double-digit returns.
The stock's weakness reflects:
hedging pressure
passive cash outflows
uncertainty about corporate classifications
declining crypto liquidity across the industry
But in the long term, as Bitcoin continues to exceed the minimum growth required, Strategy is likely to remain the leader of the digital asset treasury model.