Michael Saylor's strategy is starting to crumble and we can no longer pretend it isn't. Over the weekend, Cryptopolitan reported that Bitcoin had fallen below $76,000, breaking the line that has held Saylor's plan for years, exactly $76,037 (the average level at which Strategy bought Bitcoin).
And now Saylor is officially underwater.
MSTR stock is down nearly 70% from its all-time high. The company no longer commands a premium on its stock. And raising funds is becoming more difficult. The model doesn't work the way it used to.
Bitcoin's current crash causes it to lose its last support level
Currently, Strategy owns over 712,000 BTC. But the value of that stash is rapidly decreasing. Bitcoin fell to $74,541 on Monday, nearly matching its low of $74,425 last April, just after Donald Trump won the 2024 election. It is now at its lowest level since then.
The decline caps off a brutal January. Bitcoin fell almost 11% last month, marking its fourth consecutive month of losses. This hasn't happened since the post-bull market crash of 2017.
There are no emergencies. There are no margin calls. They don't need to sell Bitcoin. And Strategy still has $2.25 billion in cash left over from previous stock transactions.
But the bigger question is: What now? People don't buy stocks like they used to. Without new buyers, you can't keep implementing the same strategy.
Saylor's whole idea was to sell stocks when prices were high and use that cash to buy more Bitcoin. It was a smart way to build up the treasury without taking on more debt. It worked when investors were excited. Now that excitement is gone. Strategy keywords are no longer enough to persuade traders. Everyone is looking at something else. AI stocks, gold, silver, whatever is moving.
Bitcoin also doesn't work the way it used to. inflation? It didn't help. Falling dollar? It didn't help. Even if regulators sounded positive, the coin was just sitting there. people are tired. The story is broken.
Strategy stocks now trade more like a chase than a bet
Strategy can't pull the same trick again, as the stock no longer trades above the value of Bitcoin. If you sell new shares now, the remaining shares will be diluted and there will be no room for upside.
The market capitalization and value of the Bitcoin they own is almost the same. Therefore, if Bitcoin falls by 1-2%, the stock price will fall with it. It's so tight.
Traders expect further losses once U.S. markets open. Gold also fell after suffering its biggest single-day drop in a decade. Everything is unstable. And setting a strategy depends on confidence. Without that, it's just a company that has coins.
