JPMorgan

Sharp

Bitcoin

Tom Lee

Strategy stock has declined nearly 60% over the past year. According to <a href="https://cointelegraph.com/news/microstrategy-stock-bitcoin-bet-still-working?ref=btcpeers.com" rel="noopener noreferrer nofollow">Cointelegraph</a>, the company's shares dropped from around $300 in October to approximately $170. The stock has fallen more than 40% year-to-date despite the firm's continued Bitcoin accumulation strategy.
The company acquired its Bitcoin at an average price of $74,430. With Bitcoin trading around $86,000, Strategy maintains nearly 16% unrealized gains on its holdings. The firm holds 649,870 BTC worth approximately $56 billion as of November 17.
Strategy's long-term equity performance continues to outperform major technology stocks. Over five years, the company gained more than 500% compared to Apple's 130% and Microsoft's 120%. On a two-year horizon, Strategy stock rose 226% versus Apple's 43% and Microsoft's 25%.
<h3 id="hedging-strategy-creates-unexpected-market-pressure">Hedging Strategy Creates Unexpected Market Pressure</h3>
BitMine chairman Tom Lee explained that Strategy has become the primary hedging vehicle for crypto investors. The company's liquid options chain allows traders to hedge their entire crypto positions. Investors short Strategy stock or purchase puts to offset long crypto exposure.
This dynamic transformed Strategy into a pressure valve for the broader crypto market. The stock absorbs hedges and volatility that may have little connection to its Bitcoin strategy. On November 17, Strategy announced an 8,178 BTC purchase for $835.6 million, increasing its weekly acquisition rate from 400-500 coins.
We previously reported that <a href="https://btcpeers.com/bitcoin-treasury-companies-face-nav-collapse-as-retail-investors-lose-billions/" rel="noopener noreferrer nofollow">25% of public Bitcoin treasury firms now trade below their net asset value</a> as of September 2025. Average daily purchases by treasury firms fell to their lowest level since May. Strategy's premium dropped to 1.26, the lowest since March 2024.
<h3 id="digital-asset-treasury-model-faces-regulatory-scrutiny">Digital Asset Treasury Model Faces Regulatory Scrutiny</h3>
MSCI Inc. is conducting a consultation on Digital Asset Treasury company classification. <a href="https://cryptoslate.com/can-microstrategy-survive-reclassification-as-a-bitcoin-investment-vehicle/?ref=btcpeers.com" rel="noopener noreferrer nofollow">CryptoSlate</a> reports that a decision is expected after the review period ending December 31. Strategy risks expulsion from flagship equity benchmarks if reclassified.
The index provider could trigger forced selling between $2.8 billion and $8.8 billion by passive funds. JPMorgan analysts warned Strategy alone could face $2.8 billion in outflows. Roughly $9 billion of its estimated $56 billion market value sits in passive index funds.
Digital asset treasury inflows have slowed across the sector. Inflows decreased from nearly $11 billion in September to approximately $2 billion in October. November inflows reached only $500 million as of mid-month, representing a 75% decline from October.
Strategy CEO Michael Saylor defended the company's classification as an operating business. He stated the firm runs a $500 million software business alongside its Bitcoin treasury operations. The company issues Bitcoin-backed credit securities including its STRK through STRC series, totaling over $7.7 billion in notional value this year.
Wintermute identified stablecoins, exchange-traded funds, and digital asset treasuries as key crypto liquidity sources. The market-maker noted that liquidity inflows in all three areas reached a plateau. This slowdown contributed to the recent crypto market decline.
Strategy maintains 71 years of dividend coverage assuming Bitcoin prices remain flat. Any Bitcoin appreciation beyond 1.41% annually would fully offset the company's annual dividend obligations. The firm rebranded from MicroStrategy to Strategy in February 2025, positioning itself as the world's first Bitcoin Treasury Company.

Strategy Maintains Bitcoin Gains as Stock Experiences Sharp Decline

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