ambcrypto.com 
Bitcoin [$BTC] treasury firm Strategy has dropped below $100 for the first time since March 2024.
Following a 9.26% decline in the previous trading day, MSTR was trading at $94.23 at the time of writing. Its cryptocurrency holdings have climbed to 847,363 $BTC after selling 2.71 million MSTR shares. The sale raised $335.5 million in net proceeds, part of which was used to buy 520 Bitcoins for $34.9 million, an average price of $67,068 per $BTC.
Notably, Strategy’s late‑May sale of 32 $BTC was the initial catalyst for this decline.
The market reaction was swift!
Charlie Bilello, Chief Market Strategist at Creative Planning, cautioned investors not to assume that a stock has little downside simply because it has already fallen significantly.
Source: X
Although MSTR has already fallen more than 80% from its peak, Bilello noted that history shows sharp declines can deepen further. He pointed to Strategy’s shares plunging about 99.86% during the Dot‑com Bubble, underscoring that heavy losses do not always mark the bottom.
He added,
“f it were to match that, it means another -99% decline from here.
In fact, other crypto leaders also criticized Strategy’s Bitcoin buying binge, as CryptoQuant CEO Ki Young Ju noted:
Strategy’s $BTC buying here looks more like a liquidity sink than a price catalyst.
Is the Bitcoin buying spree a problem?
Young Ju observed that although the realized market capitalization of Bitcoin has increased by $467 billion over the last two years, the asset’s price has stayed relatively stable. This indicated that new buying has mostly been absorbed by increased selling pressure rather than propelling a sustained rally.
Source: CryptoQuant
According to Young Ju, the Strategy’s ongoing accumulation in this setting might just be keeping a deeper correction from happening, which would otherwise force weaker investors to give up. Hence, he recommended,
They should pause Bitcoin purchases, rebuild cash reserves, and adopt a systematic framework for purchase timing.
Market dynamics are painting a different picture
All of this occurred after Bitcoin fell 1.59% over the previous day to trade at $61,246.22 at press time. As the largest Bitcoin Digital Asset Treasury (DAT), it’s crucial to track how these shifting $BTC dynamics affect Strategy’s massive Bitcoin position.
However, CryptoQuant’s MicroStrategy Price‑to‑$BTC Reserve Ratio shows that after peaking in late 2024 and early 2025, both Strategy’s stock price and its reserve ratio have been in steady decline.
Source: CryptoQuant
This indicates that the market value of the stock has gotten closer to, or even condensed in relation to, the value of its underlying Bitcoin holdings.
Therefore, compared to the previous bull market, investors are now paying a much smaller premium for Strategy’s Bitcoin acquisition strategy.
Final Summary
- Investors are paying closer attention to Strategy’s leveraged Bitcoin treasury model as Bitcoin struggles to recover.
- Instead of depending entirely on ongoing Bitcoin purchases, Strategy might need to exhibit greater capital discipline.
