MSTR Slides 70% From Peak as $2.19B Cash Shift Fuels Crash Fears
Strategies Stock (MSTR) is under a ton of pressure right now as investors are starting to question whether its reliance on Bitcoin...
Quick overview
- Strategies Stock (MSTR) has seen a significant decline, losing nearly 70% from its all-time high and 51% in the last three months.
- The company recently sold $748 million worth of shares, increasing its cash reserves to $2.1 billion, which is viewed as a defensive move amid Bitcoin's volatility.
- MSTR's performance is heavily tied to Bitcoin's price fluctuations, with the stock acting more like a proxy for Bitcoin than a traditional tech stock.
- Options traders are showing increased concern, as evidenced by a rising put-to-call ratio, while the company's valuation metrics have deteriorated significantly.
Strategies Stock (MSTR) is under a ton of pressure right now as investors are starting to question whether its reliance on Bitcoin is really the best idea, given all the volatility we’re seeing in the market, and some big changes to its balance sheet.
The stock has taken a real hit down nearly 70% from its all-time high, and over the past 3 months it’s lost a whoppin 51% of its value, leaving people wondering whether its going to start climbing again, or if we’re just going to see more and more losses.
The latest selloff came after Strategies decided to take the cash and run, rather than continuing to pump up its investment in Bitcoin. They sold off about 748 million dollars worth of shares, which is a pretty big deal, and now they’ve got nearly 2.1 billion dollars sitting in the bank.
Unfortunately that’s more or less been seen as defensive positioning by the markets – the company is essentially saying “Hey, we don’t think things are going to get any better in Bitcoin right now, better hold onto some cash instead”.
On-Chain Data Shows How Dependent MSTR Is on Bitcoin
Take a look at the on-chain and market data and you can see just how closely MSTR is tied to the fortunes of Bitcoin. CryptoQuant have pointed out that the stock has a real knack for tanking whenever the crypto market takes a hit, which is probably because its so heavily exposed to Bitcoin’s swings.
$MSTR obv collapsed, money flow negative , all distribution, nvi and pvi are dead, institutions are not buying this, it's over , short it pic.twitter.com/U2p0dhdtqh
— Rashymagoo (@rashymagoo) December 26, 2025
Over the year so far, Bitcoin is actually looking pretty good, down about 5%, while MSTR on the other hand has tanked by 47%. That gets even worse when you throw in the effect of all the extra shares they’ve been pumping out – basically its like they’re diluting the value of the stock for any existing shareholders.
Some of the key risk factors that are really shaping the mood right now:
- Selling 748 million dollars worth of shares recently
- Ramping up the cash reserves to 2.1 billion dollars
- Taking a whoppin 51% hit in value since the start of the crypto downturn in October
- Being super sensitive to any move in Bitcoin prices
- The ongoing, and accelerating, dilution of the shareholder base
What that means is that MSTR is starting to act less like a tech stock and more like a kind of high-stakes proxy for Bitcoin.
Investors are Getting Nervous and so are the Options Traders
You can see the worry in the options traders. Put volume is going crazy right now at 323,674 contracts, outpacing call volume at 257,076, which is pushing the put-to-call ratio up to 1.26. That’s a sign of how many people are hedging their bets and trying to avoid getting caught out.
You’ve also got the looming threat of getting delisted from the MSCI indices which is adding to all the uncertainty.
Strategies Exec Chairman Michael Saylor and CEO Phong Le are still really big on Bitcoin and they think it’s going to go up in the long run and be a top treasury reserve asset. But the numbers tell a different story.
The valuation metrics just don’t look good right now. The market net asset value (mNAV) has tanked down to 1.06 and the unrealized profits from Bitcoin have shrunk from 30 billion dollars to a mere 9.2 billion.
It all Comes Down to What Happens with Bitcoin
Bitcoin is currently trading around $88,720 and we’re seeing some pretty healthy volume ahead of a $27 billion options expiry. For Strategies, the outlook is pretty much 99% dependent on what happens with Bitcoin. If it starts to climb, then maybe recovery is possible – but if its going to keep on tanking, then the outlook is looking grim.
In the meantime, MSTR is still looking like one of the most volatile ways to put your money on Bitcoin.
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