February 11 News, Michael Saylor recently responded to the continued decline in the stock price of Strategy (MSTR), stating that the fundamental reason is not due to company operations or execution issues, but rather because Bitcoin has entered a clear bear market phase over the past four months. As a highly “Bitcoinized” publicly traded company, MSTR’s stock price movement is almost entirely dependent on the Bitcoin market cycle, a structural characteristic that has been amplified in this round of correction.
Looking back at the market, Bitcoin once surged above $110,000 by the end of 2025, but then momentum weakened, and the price retreated to around $70,000, with the previous gains largely retraced. The prolonged decline caused market sentiment to turn sharply negative, putting overall risk assets under pressure, with companies most exposed to Bitcoin bearing the brunt.
Strategy is not a traditional software company; its valuation does not rely on revenue or profit multiples but is highly synchronized with Bitcoin’s price. As of early 2026, the company holds over 250,000 Bitcoin and continues to increase its holdings through debt and equity financing. This highly leveraged structure means that when Bitcoin declines, MSTR’s stock price often falls even more.
The core reason lies in the leverage effect. Fixed debt costs and rising market concerns over potential equity dilution quickly elevate risk premiums. Every Bitcoin correction is “amplified” in MSTR’s stock price, resulting in more volatile swings than the spot market.
Although some investors are surprised by the sharp reversal in market sentiment, most analyses suggest that MSTR’s movement reflects Bitcoin’s macro cycle rather than deterioration in company fundamentals. Michael Saylor has long positioned Strategy as a “Bitcoin treasury company,” which means its stock price inherently possesses high elasticity and high risk.
For investors, holding MSTR is essentially a leveraged bet on Bitcoin. If BTC enters a rebound or sideways upward phase, MSTR may quickly recover its losses; if the bear market continues, the stock price will still face downward pressure. Rational risk assessment and clear strategic planning are more important than emotions.
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