Although Strategy's stock had seen a slight increase this week, it fell again on Tuesday, extending its decline over the past few months.
This comes shortly after the company spent an additional $118 million to buy more Bitcoin, suggesting that retail investor confidence in the aggressive accumulation strategy built by founder Michael Saylor remains weak.
MSTR's price dropped despite recent Bitcoin purchases.
On Monday, Strategy (formerly known as MicroStrategy) announced the purchase of an additional 1,287 Bitcoin, bringing its total Bitcoin reserves to 673,783.
Although the deal took place at a time when Bitcoin prices were surging following tensions between the US and Venezuela, the company's stock failed to maintain its upward momentum.
MSTR stock price. Source: Google Finance .After peaking at $167.24, MSTR's stock price quickly dropped to a low of $155 before rebounding to $157. The inability of the price to recover despite favorable market conditions has raised questions about the confidence of retail investors and the company's long-term growth potential .
At the same time, Strategy's overall performance has been steadily declining since mid-2025.
Holding cash reserves does not alleviate concerns.
According to Bloomberg, Strategy recorded unrealized losses of $17.44 billion in the fourth quarter of last year alone. The prolonged selling pressure also caused the company's stock to fall nearly 50% throughout 2025 .
Subsequently, the company built up its cash reserves through the issuance of additional common stock, recently raising an additional $62 million, bringing the total fund to $2.25 billion, coinciding with the most recent Bitcoin purchase.
Nevertheless, retail investors remain concerned that Strategy will eventually be forced to sell some of its Bitcoin if the price continues to fall further. This concern is no longer just a hypothesis.
In late November, CEO Phon Le admitted for the first time that the company might have to sell Bitcoin if extraordinary events occurred. This announcement contradicted Saylor's previously stated principle of "never sell."
As we enter 2026, the situation remains challenging.
Although Strategy was temporarily "saved" on Tuesday when MSCI announced it would not remove digital assets from its index in February 2026, the future price movement of Bitcoin remains highly unpredictable.
If another sharp drop occurs, Strategy will certainly be impacted. Furthermore, continuing to increase the proportion of Bitcoin could lead to even greater negative effects and further erode the confidence of retail investors.
