Strategy Shares Plunge 8% as Bitcoin Hits Rock Bottom

Strategy Inc. stock got hammered today. The company’s shares dropped more than 8% as Bitcoin crashed to fresh one-year lows, dragging down pretty much everything crypto-related in the process.

Bitcoin’s latest nosedive broke through key support levels that traders had been watching for weeks. The selloff didn’t spare anyone – Robinhood, Circle, and other crypto-exposed companies all took hits. Strategy’s stock tumbled to levels not seen since late 2024, opening at $139.66 but quickly sliding to $128.87. That’s a brutal fall from the company’s 52-week high of around $450 per share. The tight connection between Bitcoin’s price moves and crypto stocks couldn’t be clearer right now.

Strategy owns a massive Bitcoin stash. We’re talking 713,000 coins here.

The company bought these at an average price near $76,000 per Bitcoin, which seemed smart at the time. But with Bitcoin now trading below $74,000 – marking a year-low and representing more than a 40% drop from late 2025 peaks – Strategy is sitting on some serious unrealized losses. The math isn’t pretty when you’re holding that much Bitcoin and watching it sink.

Michael Saylor isn’t backing down though. Strategy’s chairman keeps saying he’ll buy more Bitcoin no matter what happens to the price. And he’s putting money where his mouth is – the company just picked up another 855 Bitcoins for roughly $75.3 million last week. That works out to an average price of $87,974 per coin, which looked expensive then and looks even worse now.

The timing couldn’t have been worse. Strategy made that purchase right before Bitcoin fell below $75,000, pushing the company’s unrealized losses even higher. The move brought Strategy’s total Bitcoin holdings to 713,502 BTC, making them one of the biggest corporate Bitcoin holders out there. Some analysts think it’s brilliant, others call it reckless.

Strategy funded the latest Bitcoin buy by selling common stock. That’s part of their broader plan to raise cash for more digital currency investments, but this purchase was smaller than previous ones. Maybe they’re getting a bit more cautious, or maybe they’re just running low on available capital to throw at Bitcoin.

The company hasn’t said much about these recent developments. Reached for comment, Strategy didn’t respond to requests about their future plans or potential strategy changes. Saylor did mention in a company briefing on February 1 that he sees the current price drop as a buying opportunity rather than something to worry about. “We view this as a chance to accumulate more Bitcoin at attractive prices,” he said during the briefing.

But investors aren’t buying that optimism right now. Strategy’s stock has been on a wild ride over the past year, and today’s 8% drop shows just how volatile things can get when you tie your company’s fortunes to Bitcoin. The quarterly report coming later this month will probably show some ugly numbers when it comes to asset valuations.

Market watchers are keeping close tabs on Strategy’s next moves. The company’s aggressive Bitcoin accumulation strategy under Saylor’s leadership has been the defining characteristic of the stock for years now. Some see it as visionary, others think it’s way too risky for a public company to have such concentrated exposure to one volatile asset.

The crypto market’s broader struggles are hitting everyone hard. Bitcoin’s drop below $74,000 represents a major psychological level for traders, and there’s no telling where the bottom might be. Strategy’s substantial Bitcoin reserves mean the company will feel every dollar of Bitcoin’s price swings, both up and down.

Strategy’s approach of buying more Bitcoin during market dips has been consistent, but it’s also getting more expensive as they accumulate larger positions. The average cost of $76,052 per Bitcoin across their entire holdings means they need Bitcoin to stay well above that level just to break even on paper. With current prices sitting below their average cost, the pressure is mounting.

The absence of additional commentary from Strategy leaves investors guessing about what comes next. Will they keep buying more Bitcoin at these lower prices, or will market reality force them to reconsider their strategy? The company’s next quarterly earnings call will likely provide some answers, but for now, Strategy shareholders are along for whatever ride Bitcoin takes them on.

The broader cryptocurrency selloff has wiped out nearly $200 billion in market value across digital assets this week. Ethereum dropped below $2,400 for the first time since early 2024, while smaller altcoins suffered even steeper losses. Major cryptocurrency exchanges reported trading volumes surging 300% as panic selling accelerated.

Institutional investors who followed Strategy’s Bitcoin playbook are now facing similar pressures. Tesla still holds approximately 9,720 Bitcoins on its balance sheet, while Block and Marathon Digital have also seen their crypto-heavy portfolios hammered by the downturn.