Emre Yumlu 
Shares of Strategy Inc. (formerly MicroStrategy) have resumed their downward trend after a brief period of stabilization, raising renewed questions about investor confidence in the company’s Bitcoin-centric strategy. While the firm continues to double down on its long-term vision by adding more Bitcoin to its balance sheet, recent price action suggests that the market remains unconvinced—at least in the short term.
Strategy: Fresh Bitcoin Purchases Fail to Lift the Stock
Strategy recently disclosed the acquisition of an additional 1,287 Bitcoin, bringing its total holdings to 673,783 BTC. The purchases, made between late December and early January, were valued at approximately $116 million. With this move, Strategy further solidified its position as the largest corporate holder of Bitcoin globally.
Despite the scale of these holdings, the stock has struggled to respond positively. Shares briefly climbed to around $167 before reversing sharply and falling to the $155 range, later stabilizing near $157. The inability to sustain gains, even amid relatively supportive market conditions, has highlighted persistent skepticism among investors.
Growing Cash Buffer, Lingering Doubts
Alongside its Bitcoin accumulation, Strategy has also focused on strengthening its liquidity position. Through common share issuance, the company increased its cash reserves to roughly $2.25 billion, providing a cushion for debt servicing and operational needs.
However, this financial buffer has not fully alleviated concerns. Market participants increasingly worry that a deeper downturn in Bitcoin prices could eventually force the company to liquidate part of its holdings. These fears gained credibility after CEO Phong Le acknowledged late last year that selling Bitcoin could be considered under extreme circumstances—a notable departure from Michael Saylor’s long-standing “never sell” stance.
Heavy Paper Losses Weigh on Sentiment
Bitcoin’s decline in late 2025 had a pronounced impact on Strategy’s balance sheet. The company reported an unrealized loss of approximately $17.44 billion on its Bitcoin holdings in the fourth quarter. Although these losses are not realized, their sheer magnitude has pressured the stock and reinforced perceptions of elevated risk.
Such volatility has made Strategy less appealing to risk-averse investors, particularly those focused on near-term performance rather than long-term conviction.
Uncertainty Carries Into 2026
As 2026 begins, the outlook for Strategy remains mixed. MSCI’s decision to keep digital asset treasury companies in its indexes provided temporary relief, but it does not resolve the core issue: the company’s heavy dependence on Bitcoin’s price trajectory.
If Bitcoin experiences another sharp correction, Strategy’s equity is likely to feel amplified effects. While continued accumulation could pay off over a longer horizon, wavering investor confidence suggests that volatility will remain a defining feature of Strategy shares in the months ahead.
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