Bitcoin’s Crash Spells Trouble For Strategy: 10-Month Low Stings Below Average Purchase Price

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Bitcoin’s (BTC) sharp sell‑off has intensified pre

Bitcoin’s (BTC) sharp sell‑off has intensified pressure on Strategy, the company formerly known as MicroStrategy, even as it continues to expand its already massive cryptocurrency holdings. On Monday, the firm disclosed another BTC purchase at a time when prices were sliding to levels not seen in almost a year.

The 1-D chart shows MSTR’s recovery toward $142 as Bitcoin rebounded near $80,000 following Monday’s crash. Source: MSTR on TradingView.com

A subsequent rebound toward around $79,000 lifted the valuation of the company’s Bitcoin position beyond $55 billion, offering some relief but little clarity on near‑term direction.

Worst In The Nasdaq 100

So far, Strategy’s shares have suffered a steep decline. The stock is down 48% in 2025, making it the worst performer in the Nasdaq 100 index. For comparison, the second‑worst stock in the index, Charter Communications, has fallen 39% over the same period, underscoring the scale of Strategy’s underperformance.

Amid these challenges, Strategy is also scheduled to release its fourth‑quarter 2025 results on Thursday. Wall Street expectations suggest modest top‑line pressure but a sharp improvement in profitability.

The Zacks Consensus Estimate calls for fourth‑quarter revenue of $119.6 million, representing a 0.91% decline from the same period a year earlier. Earnings, however, are projected at $46.02 per share, unchanged over the past month and a dramatic turnaround from a loss of $3.20 per share reported in the prior‑year quarter.

Analysts expect the company’s fourth‑quarter performance to reflect continued financial momentum, driven largely by Bitcoin‑related gains and disciplined capital allocation.

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By the end of January 2026, the firm’s Bitcoin holdings had climbed to approximately 712,647 BTC, up from 640,808 as of Oct. 26, 2025, further increasing its sensitivity to price movements in the digital asset.

Still, recent share price performance highlights the risks tied to that strategy. Over the past three months, MSTR has fallen 43.4%, significantly underperforming the broader Finance sector, which gained 4.3% over the same period.

The stock has also lagged other Bitcoin‑exposed companies. During that timeframe, Riot Platforms, CleanSpark and Coinbase Global posted declines of 25.3%, 32.0% and 41.1%, respectively, pointing to widespread weakness among Bitcoin proxy stocks, though none have fallen as sharply as Strategy.

Featured image from OpenArt, chart from TradingView.com