Michael Saylor’s Strategy is starting to fall apart, and there’s no more pretending otherwise. Over the weekend, Cryptopolitan reported that Bitcoin had dropped under $76,000, breaking the line that had been holding up Saylor’s plan for years, which is exactly $76,037, the average level where Strategy Inc. bought its Bitcoin.
And now, Saylor is officially underwater.
The MSTR stock is down nearly 70% from the top. The company isn’t getting a premium on its shares anymore. And it’s getting harder to raise money. The model doesn’t work the way it used to.
Bitcoin’s current crash takes out the last support level
Right now, Strategy owns more than 712,000 BTC. But the value of that stash is shrinking fast. Bitcoin fell to $74,541 on Monday, nearly matching the low of $74,425 from last April, right after Donald Trump won the 2024 election. It’s now the lowest level since then.
The drop finished off a brutal January. Bitcoin lost almost 11% last month, its fourth red month in a row. That hasn’t happened since the crash after the 2017 bull run.
There’s no immediate emergency. There’s no margin call. They don’t have to sell any Bitcoin. And Strategy still has $2.25 billion in cash from past stock deals.
But the bigger issue is, what now? No one’s buying their stock like they used to. Without new buyers, they can’t keep running the same playbook.
Saylor’s whole idea was to sell shares when the price was high, then use that cash to buy more Bitcoin. It was a smart way to build the treasury without borrowing more. That worked when investors were excited. Now that excitement is gone. The Strategy keyword is no longer enough to convince traders. Everyone’s watching other things; AI stocks, gold, silver, whatever’s moving.
Bitcoin also doesn’t act the way it used to. Inflation? Didn’t help. Dollar dropping? Didn’t help. Even when regulators sounded positive, the coin just sat there. People are tired. The narrative’s broken.
Strategy’s stock now trades like a tracker, not a bet
With the stock no longer trading above its Bitcoin value, Strategy can’t pull the same trick again. Selling new shares now would dilute what’s already left, and there’s no upside.
The market cap and the value of the Bitcoin they own are almost the same. So when Bitcoin falls 1 or 2%, it drags the stock down with it. It’s that tight.
Traders expect more losses when U.S. markets open. Gold is down too, after the biggest one-day drop in ten years. Everything’s shaky. And Strategy’s setup depends on confidence. Without that, it’s just a company holding coins.