Strategy Inc., the enterprise software firm turned Bitcoin powerhouse under executive chairman Michael Saylor, saw its shares plunge about 5% in premarket trading to around $33. This sharp reaction followed Saylor's fresh announcement that the company plans to buy Bitcoin every quarter, reinforcing its aggressive treasury strategy despite mounting financial pressures.
Saylor's Unwavering Bitcoin Pledge
Michael Saylor declared that Strategy "will purchase Bitcoin every quarter," doubling down on the firm's conviction in BTC as a superior store of value. This commitment arrives amid Bitcoin's recent slide below $70,000, extending from highs near $126,000 in late 2025. The latest buy added 1,142 BTC for $90 million at an average of $78,800 per coin, swelling holdings to 714,644 BTC, roughly 3.4% of Bitcoin's circulating supply.
Saylor frames this as a long-term play to deliver leveraged returns exceeding Bitcoin itself, funded primarily through at-the-market equity offerings. Yet investors fear ongoing dilution, with shares already down over 70% from 2025 peaks amid BTC's 40%+ correction.
Stock Volatility and Premarket Slide
MSTR's premarket drop erased recent gains, with the stock trading at a steep discount to its implied Bitcoin net asset value (NAV). Current BTC levels put Strategy's hoard at ~$50 billion market value against a $54.35 billion cost basis. The stock's 2-3x beta to Bitcoin amplifies swings; it shed 9-13% in prior sessions tied to BTC dips to $72,000.
Real-time data shows MSTR at $138.44 intraday (up 2.6% from prior close of $134.93), but premarket fears linger below key EMAs like the 20-day at $154. Analysts like Canaccord slashed targets to $185 (from $474), citing volatility, while bulls like H.C. Wainwright eye $540.
$5B Unrealized Losses Weigh Heavy
Bitcoin's plunge has saddled Strategy with ~$5 billion in unrealized losses, exacerbated by Q4 2025's $12.4-12.6 billion net loss from $17.4 billion in impairment charges under mark-to-market accounting. Average purchase price sits at $76,056, leaving the treasury "underwater" as BTC hovers in the $60k-$72k range—its lowest in over a year.
Despite a $2.25 billion cash buffer providing 30 months of debt coverage, earnings volatility from BTC exposure spooks traders. Q4 software revenue disappointed, underscoring the pivot from analytics to crypto treasury.
Holdings Growth vs. Market Risks
Strategy's Bitcoin stack has ballooned via relentless quarterly buys, outpacing peers and drawing "big money" accumulation signals like rising Chaikin Money Flow (CMF). Yet risks abound: further BTC weakness to $60k could test MSTR lows near $104-$107, invalidating the recent 33% rebound.
Outlook splits analysts, bulls bet on BTC rebound above $75k propelling MSTR to $150-$189; bears flag dilution and leverage if sentiment sours. Saylor's strategy bets on "Crypto President" Trump-era tailwinds, but near-term pain persists.
