Crypto Treasury Stocks, Including Strategy, Encounter a Risky Downward Trend: Ways to Overcome It.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 30 2025
0mins
Should l Buy MSTR?
Source: Barron's
Impact on Companies: Companies holding cryptocurrencies on their balance sheets have experienced significant losses recently.
Decline in Value: The value of their digital assets and the premium on their shares have both decreased.
Future Recovery: These companies are expected to face challenges in recovering by 2026.
Crypto-Treasury Stocks: The term 'crypto-treasury' refers to stocks of companies that have invested heavily in cryptocurrencies.
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Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 126.070
Low
229.00
Averages
453.17
High
705.00
Current: 126.070
Low
229.00
Averages
453.17
High
705.00
About MSTR
Strategy Inc., formerly MicroStrategy Incorporated, is a bitcoin treasury and business intelligence company. The Company provides cloud-native, artificial intelligence (AI)-powered enterprise analytics software to thousands of global customers. The Company’s Strategy ONE platform provides access to AI-powered workflows, unlimited data sources, cloud-native technologies, and performance to speed up time from data to action. Strategy One delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Its Strategy Mosaic is a universal intelligence layer that provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. The Strategy Mosaic offers data clarity and connection by eliminating trade-offs between flexibility, control, and speed.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Strategy Launches New Product to Enhance Bitcoin Investment
- Digital Asset Strategy: Strategy's Digital Asset Treasury (DAT) model is designed to provide amplified exposure to Bitcoin, positioning its stock as a leveraged proxy for the asset, which is expected to attract more investor interest.
- New Product Launch: The company has introduced the 'Stretch' product aimed at yield-focused investors, offering high returns, monthly dividends, and strong collateral backing, with the goal of reducing investment volatility.
- Bitcoin Holding Strategy: CEO Lee stated that Strategy plans to sell Bitcoin only under extreme scenarios, such as a sustained 90% price drop to meet debt obligations, which he characterized as highly unlikely.
- Long-Term Growth Objective: Lee reiterated that the primary goal is to gradually increase Bitcoin per share, targeting a potential doubling over the next seven years, thereby creating greater value for shareholders.
See More
Cryptocurrency Market Continues to Decline
- Bitcoin Price Fluctuations: Bitcoin oscillated between $65,000 and $68,000, with low trading volume indicating a lack of strong buying interest, resulting in a 16% decline in February.
- Ethereum Support Breach: Ethereum briefly fell below its $1,900 support level but quickly rebounded, with an overall drop exceeding 20% in February, reflecting poor performance.
- Market Liquidation Data: Over $250 million was liquidated in the past 24 hours, with $179 million in bullish long positions wiped out, highlighting extreme fear among investors.
- Future Trend Predictions: Analysts noted that Bitcoin's 1130-day simple moving average historically marks cycle bottoms, currently at $66,500, and a weekly close below $68,300 could signal accelerated bearish trends.
See More
U.S. Stocks Plunge as Tech Sector Weighs Down Market
- Tech Sector Retreat: U.S. stocks experienced a significant decline on Thursday, with the S&P 500 down 1.57%, the Dow Jones down 1.34%, and the Nasdaq 100 down 2.04%, primarily driven by a sell-off in the Magnificent Seven tech stocks, indicating concerns over the profitability outlook in the tech sector.
- Cisco Systems Warning: Cisco Systems saw its stock plummet over 12% after forecasting that rising memory chip prices would erode profitability, raising investor concerns about future performance and potentially diminishing market confidence.
- Weak Economic Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000, below the expected 223,000, while January existing home sales dropped 8.4% month-over-month to 3.91 million, marking a 16-month low, which reflects signs of economic slowdown that could impact market sentiment.
- Positive Earnings Season: Despite the overall market downturn, over 76% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings projected to grow by 8.4%, indicating strong corporate profitability that may provide support for the market.
See More
Jim Chanos Critiques Strategy Inc.'s Preferred Shares Amid Stock Decline
- Stock Price Decline: Strategy Inc.'s Class A shares have plunged over 16% year-to-date and more than 60% over the past year, indicating the company's vulnerability amid a downturn in the Bitcoin market, resulting in a market valuation of $41.99 billion, which is below its Bitcoin assets valued at $48.17 billion.
- Preferred Shares Controversy: Despite CEO Phong Le claiming that the perpetual preferred shares closing at $100 is the 'story of the day,' short seller Jim Chanos expressed skepticism, arguing that such statements from a CEO with a plummeting stock are inappropriate, reflecting the company's dire financial situation.
- Cash Flow Assurance: Strategy executives assert that the company has 2.5 years of cash flow to cover dividends and debt, even amid risks of Bitcoin potentially dropping to $8,000, indicating a conservative financial management approach aimed at avoiding further liquidity pressures.
- Arbitrage Trading Strategy: Chanos has engaged in an arbitrage strategy by shorting MSTR stock while going long on Bitcoin, believing that the premium on MSTR relative to its Bitcoin holdings is unjustified and will dilute over time as the company continues to issue common equity, showcasing his deep market insights.
See More
Cryptocurrency Market Remains in Decline
- Bitcoin Volatility: Bitcoin dipped below $65,000 in early trading before bouncing back to $68,000, with a 25% increase in trading volume over the last 24 hours indicating heightened selling pressure, which may impact investor confidence.
- Market Liquidation: Over $470 million was liquidated from the market in the last 24 hours, with nearly $300 million in bullish long positions erased, reflecting a pessimistic sentiment among investors that could lead to further sell-offs.
- Ethereum Support: Ethereum remained supported at the $1,900 level despite facing pressure, indicating market focus on major cryptocurrencies, which may influence its short-term price trajectory.
- Whale Accumulation Analysis: Analysts noted that whales have been steadily buying Bitcoin's dip since it fell below $80,000, with the 30-day simple moving average of whale outflows rising to 3.2%, potentially signaling the onset of a future bull market.
See More
US Stock Market Close and Employment Data Analysis
- Strong Employment Data: US nonfarm payrolls for January increased by 130,000, surpassing expectations of 65,000, indicating labor market stability, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, which is likely to have a positive impact on economic recovery.
- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
- Mixed Market Performance: The S&P 500 closed unchanged, the Nasdaq 100 rose by 0.29%, while the Dow Jones Industrial Average fell by 0.13%, highlighting a contrast between strong tech stock performance and weakness in software stocks.
- Optimistic Earnings Outlook: Over 78% of the 335 S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating that sustained corporate profitability will support long-term stock market gains.
See More
Strategy Launches New Product to Enhance Bitcoin Investment
- Digital Asset Strategy: Strategy's Digital Asset Treasury (DAT) model is designed to provide amplified exposure to Bitcoin, positioning its stock as a leveraged proxy for the asset, which is expected to attract more investor interest.
- New Product Launch: The company has introduced the 'Stretch' product aimed at yield-focused investors, offering high returns, monthly dividends, and strong collateral backing, with the goal of reducing investment volatility.
- Bitcoin Holding Strategy: CEO Lee stated that Strategy plans to sell Bitcoin only under extreme scenarios, such as a sustained 90% price drop to meet debt obligations, which he characterized as highly unlikely.
- Long-Term Growth Objective: Lee reiterated that the primary goal is to gradually increase Bitcoin per share, targeting a potential doubling over the next seven years, thereby creating greater value for shareholders.
See More
Cryptocurrency Market Continues to Decline
- Bitcoin Price Fluctuations: Bitcoin oscillated between $65,000 and $68,000, with low trading volume indicating a lack of strong buying interest, resulting in a 16% decline in February.
- Ethereum Support Breach: Ethereum briefly fell below its $1,900 support level but quickly rebounded, with an overall drop exceeding 20% in February, reflecting poor performance.
- Market Liquidation Data: Over $250 million was liquidated in the past 24 hours, with $179 million in bullish long positions wiped out, highlighting extreme fear among investors.
- Future Trend Predictions: Analysts noted that Bitcoin's 1130-day simple moving average historically marks cycle bottoms, currently at $66,500, and a weekly close below $68,300 could signal accelerated bearish trends.
See More
U.S. Stocks Plunge as Tech Sector Weighs Down Market
- Tech Sector Retreat: U.S. stocks experienced a significant decline on Thursday, with the S&P 500 down 1.57%, the Dow Jones down 1.34%, and the Nasdaq 100 down 2.04%, primarily driven by a sell-off in the Magnificent Seven tech stocks, indicating concerns over the profitability outlook in the tech sector.
- Cisco Systems Warning: Cisco Systems saw its stock plummet over 12% after forecasting that rising memory chip prices would erode profitability, raising investor concerns about future performance and potentially diminishing market confidence.
- Weak Economic Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000, below the expected 223,000, while January existing home sales dropped 8.4% month-over-month to 3.91 million, marking a 16-month low, which reflects signs of economic slowdown that could impact market sentiment.
- Positive Earnings Season: Despite the overall market downturn, over 76% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings projected to grow by 8.4%, indicating strong corporate profitability that may provide support for the market.
See More
Jim Chanos Critiques Strategy Inc.'s Preferred Shares Amid Stock Decline
- Stock Price Decline: Strategy Inc.'s Class A shares have plunged over 16% year-to-date and more than 60% over the past year, indicating the company's vulnerability amid a downturn in the Bitcoin market, resulting in a market valuation of $41.99 billion, which is below its Bitcoin assets valued at $48.17 billion.
- Preferred Shares Controversy: Despite CEO Phong Le claiming that the perpetual preferred shares closing at $100 is the 'story of the day,' short seller Jim Chanos expressed skepticism, arguing that such statements from a CEO with a plummeting stock are inappropriate, reflecting the company's dire financial situation.
- Cash Flow Assurance: Strategy executives assert that the company has 2.5 years of cash flow to cover dividends and debt, even amid risks of Bitcoin potentially dropping to $8,000, indicating a conservative financial management approach aimed at avoiding further liquidity pressures.
- Arbitrage Trading Strategy: Chanos has engaged in an arbitrage strategy by shorting MSTR stock while going long on Bitcoin, believing that the premium on MSTR relative to its Bitcoin holdings is unjustified and will dilute over time as the company continues to issue common equity, showcasing his deep market insights.
See More
Cryptocurrency Market Remains in Decline
- Bitcoin Volatility: Bitcoin dipped below $65,000 in early trading before bouncing back to $68,000, with a 25% increase in trading volume over the last 24 hours indicating heightened selling pressure, which may impact investor confidence.
- Market Liquidation: Over $470 million was liquidated from the market in the last 24 hours, with nearly $300 million in bullish long positions erased, reflecting a pessimistic sentiment among investors that could lead to further sell-offs.
- Ethereum Support: Ethereum remained supported at the $1,900 level despite facing pressure, indicating market focus on major cryptocurrencies, which may influence its short-term price trajectory.
- Whale Accumulation Analysis: Analysts noted that whales have been steadily buying Bitcoin's dip since it fell below $80,000, with the 30-day simple moving average of whale outflows rising to 3.2%, potentially signaling the onset of a future bull market.
See More
US Stock Market Close and Employment Data Analysis
- Strong Employment Data: US nonfarm payrolls for January increased by 130,000, surpassing expectations of 65,000, indicating labor market stability, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, which is likely to have a positive impact on economic recovery.
- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
- Mixed Market Performance: The S&P 500 closed unchanged, the Nasdaq 100 rose by 0.29%, while the Dow Jones Industrial Average fell by 0.13%, highlighting a contrast between strong tech stock performance and weakness in software stocks.
- Optimistic Earnings Outlook: Over 78% of the 335 S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating that sustained corporate profitability will support long-term stock market gains.
See More
