Strategy, formerly known as MicroStrategy, has fallen nearly 49% in 2025 and recently touched a new 52-week low near $153. Bitcoin declined by only about 6% over the same period, leaving a much wider gap between the company’s share performance and the price of the asset that defines its balance sheet.
Share dilution became a bigger issue than Bitcoin’s pullback
Bitcoin slipped from earlier highs near $126,000 to roughly $87,000, which clearly weighed on sentiment. Still, that move alone does not explain why MSTR dropped so much more. The article points to repeated share issuance as a central reason. Strategy kept selling new shares to buy more Bitcoin, expanding its holdings while also increasing the share count and reducing value per share for existing investors.
Market criticism added to the pressure. Economist Peter Schiff argued that if Strategy were in the S&P 500, its nearly 47.5% decline would rank it among the index’s weakest performers. He also said Michael Saylor’s commitment to Bitcoin had damaged shareholder value.
Bitcoin treasury remains large, but the stock trades at a discount
According to the source material, Strategy holds 672,497 BTC acquired at an average cost of around $75,000 per coin. At Bitcoin prices near $87,000, that stash is worth about $58 billion to $59 billion. The company’s market capitalization is only about $46 billion to $47 billion. Strategy also has more than $2.1 billion in cash and faces no major debt maturities until 2028.
Even with assets exceeding equity value, the stock is said to be trading at a 20% to 25% discount to asset value. That is unusual for Strategy. Investors are not only reacting to Bitcoin price action; they are also pricing in capital structure concerns and the effect of ongoing dilution.
Balance-sheet stress is not the same as bankruptcy risk
Some online claims suggested Strategy could run into trouble if Bitcoin falls to $74,000. The figures in the source do not support that view. At that level, the company’s Bitcoin would still be worth close to $50 billion, well above its total debt of roughly $8.2 billion. One detail matters here: the Bitcoin is not pledged as collateral for loans, so a price drop does not trigger forced selling tied to margin rules.
The source also says Strategy has enough cash to cover costs and dividends for more than two years without selling any BTC. That leaves the current weakness looking more like a valuation and sentiment problem than a near-term solvency issue.
Bitcoin remains below resistance as the market watches for a break
Bitcoin is still trading below the key $89,000 resistance level. ETF outflows, regulatory uncertainty, and risk-off positioning have slowed momentum. The article’s view is that the market looks more like consolidation than collapse, with BTC likely to move between $86,000 and $90,000 in the near term. If Bitcoin can break above that range, traders will be watching whether Strategy’s deep discount starts to narrow.