Strategy shares down 30% since Saylor’s Forbes cover
Strategy (MSTR) has witnessed a significant decline in its share price, plummeting by 30% since its executive chairman, Michael Saylor, graced the cover of Forbes. According to stock price data from Yahoo Finance, the company’s shares dropped from $340.09 on January 30 to $238.25 by March 10. Notably, March 10 marked a particularly rough day, with a 17% decline occurring amidst a broader sell-off in tech stocks. The Nasdaq Composite, which includes Strategy, suffered a decline of over 4% on the same day.
Investors are currently grappling with renewed fears of a recession, with the Atlanta Fed projecting a concerning -2.4% growth for the first quarter of 2025. This sentiment is reflected in CNN’s Fear & Greed index, which registered an “Extreme Fear” score of 16, highlighting the pervasive anxiety among market participants.
Despite these challenges, Strategy’s commitment to its Bitcoin (BTC) investment strategy remains steadfast. On the very day of the stock dip, the company announced plans to raise an additional $21 billion aimed at “general corporate purposes, including the acquisition of Bitcoin and for working capital.” This follows a notable purchase on February 24, when Strategy acquired 20,356 Bitcoin for nearly $2 billion. Despite the fluctuation in the cryptocurrency market, Strategy’s Bitcoin investments remain profitable, boasting a margin of 18.9% as the company has acquired BTC at an average cost of $66,423.
The market’s reaction to Strategy’s aggressive Bitcoin acquisition strategy has drawn mixed responses. While some industry proponents consider it a savvy investment in a rapidly evolving digital landscape, critics have raised alarms, equating the company’s high-leverage practices to a ticking time bomb. Notably, investor Hedgex.eth has characterized Saylor’s tactics as potentially damaging to Bitcoin’s stability, while fellow commentator Haralabos Voulgaris echoed concerns about a future collapse tied to Strategy’s activities.
Nonetheless, Strategy’s bold initiatives have inspired other companies to adopt similar Bitcoin purchasing strategies. An example includes Metaplanet, which saw its stock price skyrocket by 4,800% in a year following its announcement to acquire Bitcoin for its treasury.
In the midst of significant corporate upheaval and regulatory scrutiny, the crypto landscape continues to face challenges, echoing the cautionary tales of high-profile figures like Sam Bankman-Fried of FTX, who recently received a 25-year prison sentence for financial misconduct. As Strategy moves forward, it threads a precarious line between innovation and risk as it navigates the evolving digital asset marketplace.
