While Strategy’s stock soared to dizzying heights in November 2024, the company’s recent performance has left investors nursing some serious wounds. The former software company’s shares have crashed a whopping 55% from their $543 peak, now languishing around $250. Ouch.
The pain is even worse for those brave (or foolish) souls who jumped into leveraged ETFs tracking Strategy. MSTX and MSTU are down 90% and 85% respectively. Talk about a bloodbath.
Leveraged bets on Strategy? More like financial suicide. These ETFs are obliterating investor portfolios faster than a crypto winter.
But let’s get real about Strategy’s long game. The company, which rebranded from MicroStrategy in February 2025, now sits on a mountain of Bitcoin – 499,096 to be exact. That’s roughly $43 billion worth. Not too shabby for a former enterprise software peddler.
Their Bitcoin strategy has actually worked. So far. Strategy boasts a 32% unrealized profit on their holdings, with their average cost basis at $66,300 per BTC. That translates to a paper profit of $10.65 billion. The company has access to additional $6.2 billion from convertible notes to potentially expand their Bitcoin holdings further. The company’s overall performance since their first Bitcoin purchase in 2020? Up 1,800%. Even outpacing Nvidia.
Of course, there’s debt. Lots of it. Strategy carries $8.2 billion in outstanding obligations, mostly in convertible notes. The good news? Bitcoin would need to crater to $16,500 before any forced liquidation occurs. Experts like Kobeissi Letter call that scenario “highly unlikely.”
Strategy’s business model is simple, if not bizarre. They raise capital through debt and stock offerings, then buy more Bitcoin. Rinse, repeat. Their share count has ballooned 178.6% since August 2020, while their balance sheet flipped from $531 million net cash to $7.2 billion net debt.
Meanwhile, Bitcoin trades around $87,000, down from recent heights after $937.9 million in ETF outflows and $1 billion in liquidated long positions. Bitcoin’s limited supply cap creates inherent scarcity that underpins its long-term value proposition regardless of short-term volatility. The crypto’s in what analysts call its “Acceleration Phase” since July 2024, with a potential cycle top expected in Q2 2025.
