Stock Plunge and Market Expectations
Shares of Strategy (ticker MSTR) tumbled more than 15% in heavy trading on Thursday, July 2, 2026, as markets reacted to deepening weakness in Bitcoin and ahead of the company’s quarterly earnings report scheduled after the close. The stock fell from the $150 range to sub $110 per share, marking one of the largest single‑day moves for a Bitcoin‑linked equity in recent months. Options markets are pricing in a potential swing of roughly ±8.3% to 8.7% following the report, reflecting high uncertainty.
The company’s Q4 2025 earnings call is set for later today at 5 p.m. ET, with a livestream available on Bitcoin Magazine’s YouTube channel. Prior to this drop, Strategy shares had already sunk over 20% in just five trading days as Bitcoin’s price headed toward $72,000 and broader crypto markets showed sustained weakness.
Bitcoin Crash Weighs on Strategy’s Balance Sheet
Bitcoin Magazine reported earlier this week that the decline in Strategy’s stock correlated closely with Bitcoin’s price weakness. At the time of writing, Bitcoin is trading near $66,000, approaching new year-long lows. Under fair value accounting rules, the company’s crypto holdings—which constitute the vast majority of its assets—must be marked to market each quarter. This means Bitcoin’s price volatility will translate directly into sizable swings in reported net income for the quarter ending December 31, 2025. Market watchers noted that even a 1% move in BTC could amplify into a significant change in Strategy’s reported earnings due to the sheer size of its holdings.
The broader crypto downturn since late 2024 has erased substantial gains. As the largest publicly traded corporate holder of Bitcoin, Strategy’s financial health is uniquely tied to BTC’s price, making its earnings call a closely watched event.
Michael Saylor’s Stance: No Selling, Double Down
Despite the stock and Bitcoin price declines, Chairman Michael Saylor has made it clear that Strategy will not sell its Bitcoin—and in fact is doubling down on purchases even as the market dips. He has signaled comfort with holding and adding on weakness, not cashing out when prices fall. This contrarian strategy reinforces MSTR’s role as a leveraged Bitcoin investment vehicle. Investors are now keenly awaiting the earnings call for any updates on the company’s cost basis or potential changes in strategy.