Strategy's Stock Drops 30% Amid Market Sell-Off, Bitcoin Strategy Unchanged

Strategy, a prominent technology company, has experienced a notable decline in its share price, with a 30% decrease since its executive chairman and former CEO, Michael Saylor, was featured on the cover of Forbes. This downturn spanned from January 30 to March 10, with the stock price plummeting from $340.09 to $238.25. The decline was particularly steep on March 10, with a 17% drop that coincided with a broader sell-off in the tech stock market.

The broader market conditions have been tumultuous, with renewed fears of a recession and increased trade war rhetoric contributing to investor anxiety. The Nasdaq Composite, to which Strategy belongs, saw a decline of over 4% on March 10. The Atlanta Fed's projection of a negative 2.4% gross domestic product growth for the first quarter of 2025, along with the CNN’s Fear & Greed index sitting at ‘16’ for the day, indicating ‘Extreme Fear,’ further underscored the market's pessimistic sentiment.

Despite the falling stock price, Strategy has remained steadfast in its commitment to its Bitcoin strategy. The company announced plans to raise an additional $21 billion for general corporate purposes, including the acquisition of Bitcoin and for working capital. On February 24, Strategy purchased 20,356 Bitcoin for nearly $2 billion. Although Bitcoin recorded its largest weekly decline in history on March 10, Strategy’s Bitcoin investment remains profitable by 18.9%. The company has purchased its BTC at an average cost of $66,423, which is well below the current price of the asset.

Strategy’s decision to acquire more Bitcoin by issuing stock and using debt has sparked a heated debate within the crypto community. Proponents view it as a strategic bet on the digital asset’s potential, while critics argue that it is risky and unsustainable. Some have likened the company to a ticking time bomb or a Ponzi scheme, expressing concerns about the potential for a Bitcoin implosion tied to Strategy’s actions. Despite the criticism, Strategy’s approach has inspired other companies to adopt similar Bitcoin strategies. For instance, Metaplanet saw a 4800% increase in its share price over 12 months after announcing its BTC buying strategy. This trend suggests that while Strategy’s actions have