Bitcoin Fell, MSTR Declined Even More Sharply

While Bitcoin closed five consecutive months in negative territory, this streak has reached eight months for MSTR stock. During the summer months, the stock reached its all-time high above the $450 level along with Bitcoin’s rally. However, as Bitcoin pulled back from the $126,000 level in October, selling pressure on MSTR accelerated even further.

As of today, MSTR is trading around the $129 level. In the last six months, while Bitcoin lost approximately 50% of its value, the decline in MSTR exceeded 60%. Looking solely at February’s performance, Bitcoin declined by 14%, while MSTR recorded a loss of around 20%. This picture once again demonstrates why the stock is referred to as “leveraged Bitcoin”: sharper premiums during rises and deeper losses during declines.

Geopolitical Risk and Market Opening

The fact that U.S. markets will open for the first time since the Iran war began over the weekend also increases short-term risks. If geopolitical tension remains high, selling pressure is likely to continue in risky assets, including MSTR.

That said, Bitcoin beginning to test the $70,000 level again does not make the scenario entirely one-sided. A potential recovery move could bring a sharp “short squeeze” rally in MSTR as well.

Expectation of New Bitcoin Purchase

Another item on the market’s agenda is the expectation that Strategy could announce a new Bitcoin purchase. The recent post by the company’s founder Michael Saylor indicates that a new BTC acquisition for the past week could be announced.

Due to its high Bitcoin position, MSTR stock continues to behave more like a high-beta derivative of the crypto market rather than a classic technology stock. In the coming days, both Bitcoin’s price and macroeconomic developments will be decisive for the stock’s direction.

What is MicroStrategy (Strategy)?

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post Strategy Share MSTR Has Been in Decline for Eight Months! appeared first on Coin Engineer.

According to company statements, Strategy maintains a capital structure resilient enough to withstand extreme downside scenarios in Bitcoin’s price. Management asserts that even if Bitcoin were to decline to $8,000, the firm would still hold sufficient assets to fully cover its outstanding debt obligations. With roughly 714,644 BTC on its balance sheet—valued at approximately $49 billion—the company’s digital asset reserves significantly exceed its $6 billion in convertible debt. In practical terms, Bitcoin would need to fall by about 88% for asset values to align with the debt level.

What Converting Convertible Debt Means

Converting convertible bonds into equity involves issuing shares to bondholders instead of repaying the principal in cash. This strategy reduces debt liabilities and strengthens the company’s equity base, potentially lowering financial risk during volatile market cycles.

However, such a move carries implications for existing shareholders. Issuing new shares can lead to dilution, reducing the proportional ownership of current investors. Despite this trade-off, Strategy appears to prioritize balance sheet durability and long-term sustainability over short-term equity concentration.

Bitcoin Exposure and Current Positioning

Strategy’s average Bitcoin acquisition cost stands at approximately $76,000 per BTC. With Bitcoin currently trading near $68,400, the company is operating at an unrealized loss of roughly 10% on its holdings. Nonetheless, recent signals from Saylor suggest that the firm may continue accumulating Bitcoin. If another purchase is executed, it would mark 12 consecutive weeks of buying activity.

Stock Performance and Market Context

Strategy’s stock (MSTR) closed the week at $133.88, reflecting an 8.8% gain, coinciding with Bitcoin’s brief recovery above the $70,000 level. However, the cryptocurrency later retreated back toward $68,400.

Despite the recent uptick, MSTR shares remain approximately 70% below their mid-July all-time high of $456. Similarly, Bitcoin has declined around 50% from its early October peak.

The company’s decision to equitize its convertible debt represents a strategic recalibration at the intersection of corporate finance and digital asset exposure, and it remains a closely watched development in both markets.

This article does not constitute investment advice.

What is MicroStrategy (Strategy)?

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Strategy Announces New Plan! appeared first on Coin Engineer.

Bitcoin Price Decline and Portfolio Pressure

Bitcoin reached a cycle peak of $126,000 in early October before entering a steep correction. By the end of the quarter on December 31, the price had fallen below $88,500. The weakness extended into early 2026, with Bitcoin down roughly 30% year-to-date and trading near $64,500. This level sits well below Strategy’s average acquisition cost of $76,052 per Bitcoin.

At its lowest point, Bitcoin briefly touched $62,500, pushing Strategy’s unrealized loss on its 713,502 BTC holdings to approximately 17.5%. Given the company’s substantial exposure, even modest price movements have an outsized effect on its balance sheet.

Stock Reaction and Operating Performance

The sell-off in Bitcoin also weighed heavily on Strategy’s equity performance. Shares of MSTR closed 17% lower on the day of the announcement, ending at $107. However, the company’s operating business showed relative stability. Fourth-quarter revenue rose 1.9% year-on-year to $123 million, supported primarily by its business intelligence segment, which continues to generate consistent cash flow.

Management Emphasizes Financial Resilience

Chief Financial Officer Andrew Kang described Strategy’s capital structure as stronger and more resilient than ever. He highlighted that the company’s long-term Bitcoin strategy, anchored by its 713,502 BTC holdings and a shift toward digital credit, reflects an indefinite investment horizon rather than short-term speculation.

Liquidity also improved during the quarter, with cash reserves increasing to $2.25 billion. This level is sufficient to cover approximately 30 months of dividend obligations. Importantly, Strategy faces no major debt maturities before 2027, reducing near-term refinancing or forced liquidation risk.

Chief Executive Officer Phong Le echoed this confidence, stating there is no cause for concern regarding the firm’s financial position or Bitcoin strategy. He noted that Strategy’s enterprise value remains above its $45 billion Bitcoin reserve and that its $8.2 billion in convertible debt represents only about 13% net leverage—well below levels typical for many S&P 500 companies.

Overall, while short-term volatility has led to significant accounting losses, Strategy continues to position itself firmly around a long-term Bitcoin thesis.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Strategy Q4 Balance: Heavy Losses Amid a Long-Term Bitcoin Bet appeared first on Coin Engineer.

As 2026 unfolds, the key question is whether this shift marks the beginning of a structurally different era for digital assets—or simply another stage in crypto’s evolving cycle.  Here is the Fidelity Report!

Could Governments Turn to Crypto Reserves? Fidelity Answers!

While many governments already hold limited amounts of cryptocurrency, only a small number have formally integrated these assets into their national reserve strategies. That reality has started to change. The U.S. decision has established a reference point that other nations may increasingly feel compelled to consider.

Some countries have already taken notable steps. Kyrgyzstan has moved forward with legislation to establish a crypto reserve, while Brazil has advanced a proposal that would allow Bitcoin to make up as much as 5% of its foreign exchange reserves. Analysts increasingly view this as a form of geopolitical and financial game theory, where nations may feel pressure to avoid lagging behind peers adopting digital assets at the sovereign level. Should this trend continue, sustained government-driven demand could become a meaningful long-term factor in crypto pricing.

Corporate Balance Sheets and Digital Assets

Governments are not the only entities shaping demand dynamics. Corporate participation in crypto has continued to grow, with more publicly traded companies treating Bitcoin as a strategic balance-sheet asset rather than a short-term trade.

As the market enters 2026, more than 100 publicly listed companies globally hold cryptocurrencies, and roughly 50 of them collectively control over one million Bitcoin. This structure has also created indirect exposure opportunities for investors who are unable—or unwilling—to hold crypto directly. At the same time, it introduces additional risk: in periods of market stress, corporate liquidations could intensify downside pressure.

Do Bitcoin’s Four-Year Cycles Still Apply?

Historically, Bitcoin has followed relatively consistent four-year cycles marked by powerful bull markets and sharp corrections. With the last major peak occurring in late 2021, the market is now well past the traditional cycle midpoint.

Some investors argue that deeper institutional involvement could smooth future drawdowns, making extreme bear markets less likely. Others believe the market may be transitioning into a longer-lasting expansion phase, sometimes described as a “supercycle.” Still, fundamental market psychology—driven by fear and greed—remains intact, suggesting that cycles may be evolving rather than disappearing altogether.

Is Bitcoin Still Attractive in 2026?

For short- and medium-term participants, uncertainty remains a defining feature of the market. However, from a long-term perspective, Bitcoin’s fixed supply continues to support its positioning as a hedge against inflation and monetary expansion.

As 2026 progresses, the crypto market appears to be navigating a critical transition—one shaped by broader adoption, structural maturation, and a gradual redefinition of digital assets within the global financial system.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Fidelity 2026 Crypto Report Has Been Released! appeared first on Coin Engineer.

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.

In the comment section, you can freely share your comments and  opinions about the topic. Additionally, don’ t forget to follow us on Telegram, YouTube, and Twitter for the latest news and updates.

The post Strategy Shares Down: Is Confidence in the Bitcoin Playbook Fading? appeared first on Coin Engineer.

Addressing Dividend Concerns Before They Escalate

In an interview with CNBC, Phong Le explained the motivation behind raising such a large amount in a short period. He noted that recent market discussions, particularly on social platforms, had cast doubt on Strategy’s capacity to sustain its dividend payments during a period of Bitcoin weakness.

Le emphasized that these claims had also fueled the perception that the company might be forced to liquidate part of its Bitcoin holdings. He rejected this notion, stressing that Strategy had no immediate need to sell any assets. To quiet the growing uncertainty, the company raised the equivalent of 21 months’ worth of dividend obligations in only eight days. Management also revealed plans to extend this reserve to cover 24 months in the near future.

Bitcoin Sales Considered Only Under Exceptional Conditions

Although Strategy maintains sizable Bitcoin reserves, Le reiterated that selling these assets is not part of the firm’s operational plans. Such a step, he explained, would only be considered under rare circumstances—specifically if the company’s stock were to fall below its net asset value and access to fresh capital were no longer available. Until then, the firm intends to preserve its long-term Bitcoin strategy.

Demonstrating Long-Term Dividend Stability

Following the announcement, Strategy introduced a new “BTC Credit” dashboard to further reassure stakeholders. According to the company’s calculations, its current asset position could theoretically support dividend payments for more than 70 years.

This strategic move signals the firm’s intent to remain resilient through market cycles while strengthening trust in its financial stability and long-term vision.

What is MicroStrategy (Strategy)?

You can freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram  ,YouTube and Twitter channels for the latest news and updates.

The post Strategy Strengthens Its Position With a Major Cash Reserve appeared first on Coin Engineer.

No Immediate Pressure to Sell

Hougan notes that Strategy’s share price dropping below its net asset value (NAV) does not automatically create a scenario where Bitcoin must be offloaded. He points to Chairman Michael Saylor’s steadfast commitment to Bitcoin and the company’s long-term accumulation strategy as key reasons why a forced sale is not on the table.

He also highlights that Strategy currently holds around $1.4 billion in cash and has no debt maturing until 2027. With these factors in place, Hougan emphasizes that there is no financial obligation driving the company toward liquidation.

Debate Sparked by the CEO’s “Last Resort” Comment

The discussion intensified last week after CEO Phong Le suggested that, if the company’s market capitalization were to fall below the total value of its Bitcoin holdings and financing alternatives were exhausted, selling Bitcoin could become a “last resort.” The remark raised concerns among investors.

Hougan, however, stresses that such a scenario is not realistic at present. Bitcoin is trading near $92,000, which remains 24% above Strategy’s average purchase price of $74,436.

Financial Responsibilities Remain Manageable

Hougan further explains that the company faces roughly $800 million in annual interest payments but has enough cash reserves to cover these expenses without strain. As a result, he sees no short-term liquidity pressures that would push the firm toward selling its BTC.

Potential MSCI Removal Adds Market Noise

Recent weakness in the stock has also been linked to MSCI’s indication that companies with over half of their balance sheets tied to crypto assets may be removed from its index. Such an action could force index-tracking funds to sell.

Even so, Hougan points out that index-related flows often have less impact than expected. He cites Strategy’s entry into the Nasdaq-100 as an example, where approximately $2.1 billion in inflows did not trigger a significant price reaction.

What is MicroStrategy (Strategy)?

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitwise CIO: “Strategy Won’t Be Forced to Sell Its Bitcoin” appeared first on Coin Engineer.

Steep Stock Decline, Yet Long-Term Strength Remains Intact

Data indicates that Strategy’s shares have dropped nearly 60 percent over the last twelve months, with more than 40 percent of that decline occurring since the start of the year. After trading around the 300-dollar level in October, the stock has now slipped to approximately 170 dollars.

This steep pullback has fueled speculation that the company’s Bitcoin-driven business model may be losing its edge. Even so, a review of key metrics reveals that Strategy’s Bitcoin investment strategy continues to show profits.

According to BitcoinTreasuries.NET, the company’s average purchase price for Bitcoin sits around 74,430 dollars. With Bitcoin currently trading near 86,000 dollars, Strategy’s position is still up by roughly 16 percent.

Long-term equity performance also paints a different picture than recent volatility might suggest. Over the past five years, Strategy’s stock has gained more than 500 percent, far outperforming major tech names such as Apple (about 130 percent) and Microsoft (around 120 percent). Even over the past two years, Strategy has surged 226 percent, leaving Apple’s 43 percent and Microsoft’s 25 percent gains far behind.

A New Dynamic: Shorting Strategy as a Hedge Against Bitcoin Exposure

The recent sell-off may have less to do with Strategy’s Bitcoin thesis and more with how institutional investors are managing risk in a highly uncertain market.

Speaking to CNBC, BitMine Chairman Tom Lee noted that Strategy’s stock has increasingly become a preferred tool for hedging crypto exposure because of its highly liquid options market. As he explained, investors looking to offset long Bitcoin positions often choose to short Strategy’s stock or buy put options.

This unintended role has made the company vulnerable to volatility unrelated to its operational performance. Instead, its shares have become a proxy for broader market caution, absorbing selling pressure even as its underlying Bitcoin holdings remain profitable.

Saylor Doubles Down: Bitcoin Accumulation Continues

Despite the stock’s decline, Strategy shows no sign of deviating from its core mission. Executive Chairman Michael Saylor reiterated the company’s commitment on X, signaling that the accumulation strategy will continue without hesitation.

On November 17, the company announced the purchase of 8,178 additional Bitcoin, an acquisition valued at approximately 835.6 million dollars. This marks a significant increase compared to recent weekly averages of 400 to 500 BTC.

Following this purchase, Strategy’s total Bitcoin holdings rose to 649,870 BTC, representing a current market value of roughly 56 billion dollars.

What is MicroStrategy (Strategy)?

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Strategy Stock Plunges Sharply: Is the Bitcoin-Focused Model Failing? appeared first on Coin Engineer.

MicroStrategy is known for aggressively accumulating Bitcoin even during historic bear markets, which is why every major drop leads investors to ask: “At what price would Saylor start taking a loss?”

Strategy’s Bitcoin Portfolio: Cost Basis, Value, and Profit Status

As of today, Strategy holds a total of 649,870 BTC. At current market prices, the company’s portfolio is valued at $54.24 billion. The most critical metric is the company’s average purchase price: MicroStrategy’s average Bitcoin cost basis: $74,433

Based on this figure, BTC is still trading in the company’s favor. With Bitcoin hovering around $81,000, Strategy is currently:

• 13% in profit
• + $5.86 billion in unrealized gains

However, the accelerating decline and rising volatility show that this level is being approached rapidly.

Performance Gap Between Bitcoin and MSTR Widens

A performance comparison over the past year reveals that Strategy shares have significantly underperformed relative to Bitcoin:

• MicroStrategy stock has fallen 59.02% in the last year
• Bitcoin fell only 15.72% in the same period
• The gap: –43.30 points

This indicates substantial erosion in the company’s market value. Investors highlight that even when Bitcoin does not fall sharply, the company’s stock still experiences major declines.

Saylor Remains Unbothered: “We Could Survive an 80–90% Crash”

Despite the current picture, Michael Saylor remains remarkably calm. In an interview with Fox, he stated that Strategy’s Bitcoin-focused structure is built to survive even massive downturns:

“Strategy could continue operations even through an 80–90% Bitcoin crash.”

Saylor also pointed to Bitcoin’s long-term correction history:

• Bitcoin has experienced 15 major drawdowns in 15 years
• After each correction, it eventually reached new all-time highs
• Sharp pullbacks “wipe out leveraged positions and weak hands”

According to Saylor, Bitcoin’s volatility is steadily decreasing. Annual volatility has dropped from 80% in 2020 to around 50% today. That’s why Strategy remains focused on long-term growth rather than short-term price declines.

The Critical Level for Saylor

If Bitcoin continues its downward trend, there is a clear price level at which Strategy would enter a loss: Critical threshold: $74,433 A drop below this level would technically put the company’s Bitcoin position into the red, but no short-term shift in the company’s strategy is expected. Bitcoin’s historical cycle shows that every major correction is eventually followed by new long-term highs. Strategy’s aggressive BTC accumulation strategy is built entirely on this belief.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post How Much Would Bitcoin Need to Fall for Saylor to Take a Loss? appeared first on Coin Engineer.

At the beginning of 2025, the company decided to drop the word “Micro” from its name and continue solely with the Strategy brand. This simplification aimed to create a stronger brand perception, similar to the example of “The Facebook.” Today, Strategy is referred to as “The World’s First and Largest Bitcoin Treasury Company.”

What is MicroStrategy (Strategy)?

In its early years, Strategy helped companies analyze big data and make better decisions with its business intelligence and data analytics software. The company went public on NASDAQ in 1998 under the ticker MSTR, but after accounting issues with the SEC in the early 2000s, its shares traded in a narrow band for a long time.

The real turning point came in 2020. Led by Michael Saylor, the company made a historic move in the financial world by adopting Bitcoin as its reserve asset. Initially purchasing $250 million worth of BTC, the firm became one of the pioneers of bringing crypto onto corporate balance sheets.

Strategy’s Bitcoin Treasury

Strategy views Bitcoin not just as an investment tool but also as a hedge against inflation and a long-term store of value. In line with this vision, the company’s Bitcoin purchases grew steadily.

• The company financed its Bitcoin investments through methods such as issuing convertible bonds and stock sales.

• At the beginning of 2025, it launched a new stock under the ticker STRK, aiming to raise $584 million.

• In February 2025, it announced a $2 billion convertible bond issuance.

This strategy was later adopted by other publicly traded companies (e.g., MARA, Riot Platforms). Michael Saylor compared this approach to real estate development in Manhattan: “As value increases, new debt is issued and more assets are acquired.”

Bitcoin and Corporate Financing: An Innovative Approach

Strategy’s financing model allowed the company to accumulate Bitcoin not only through cash reserves but also through debt instruments. This set a unique example in the corporate world.

• In October 2024, the company announced plans to raise up to $42 billion to increase Bitcoin purchases.

• In January 2025, it decided to increase the number of its Class A shares by 30 times, paving the way for much larger-scale Bitcoin investments.

Today, Strategy holds 478,740 BTC, the largest Bitcoin portfolio among publicly traded companies. The total value of these holdings exceeds $72 billion, and the company has made $15.5 billion in profit from its purchases to date (as of February 2025).

Michael Saylor’s Bitcoin Vision

Although Michael Saylor is one of the strongest advocates of Bitcoin today, he was not always so. In a 2013 tweet, he even said that Bitcoin’s “days were numbered.” However, from 2020 onward, he took a completely different stance.

Saylor describes Bitcoin as “digital gold” and projects its price at $13 million in a 21-year outlook. According to him, “Everything that can be tokenized will be tokenized.”

In line with this vision, Strategy’s goal is not only to build a massive Bitcoin treasury but also to transform into a trillion-dollar Bitcoin bank. The company plans to offer Bitcoin-based financial products and capital market instruments in the future.

Criticisms and Risks

Although Strategy’s Bitcoin strategy has been praised, some criticisms have also emerged.

• At the end of 2024, Sherwood Media argued that the company’s valuation was three times the value of its Bitcoin holdings and that this math could pose risks in the long run.

• Citron Research considered the company’s shares overvalued and took short positions.

One of the biggest risks is that if Bitcoin prices drop significantly, the company may be forced to sell BTC to pay off its more than $4 billion in convertible debt. This could create a chain reaction for both the company and the market.

Strategy’s Role in the Crypto Ecosystem

Today, Strategy is not only a software company but also a symbol of institutional Bitcoin adoption. The company’s aggressive purchases paved the way for giants like Tesla and Square to invest in Bitcoin.

Despite the volatility in Bitcoin prices, Strategy’s long-term vision is clear: accumulate more BTC and play a leading role in the global financial world.

For this reason, Strategy stands out as one of the most important players shaping both the future of the crypto ecosystem and institutional investment.

Strategy’s Current Bitcoin Data (February 2025):

• Total Bitcoin: 639,835 BTC

• Total Cost: $47.3 billion

• Current Value: $72.2 billion

• Profit/Loss: +$15.5 billion

• Share of Total BTC Supply: 3.04%

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post What is MicroStrategy (Strategy)? appeared first on Coin Engineer.