Michaelโ Saylor‘s Strategy โFaces Critical Test as MicroStrategyโ Stock plummets
NEWโข YORK – MicroStrategy (MSTR)โ is confronting it’s most significant challenge yet as its stock โprice has sharply declined, mirroring a broader downturn in the cryptocurrency โmarket. โThe company,spearheaded by Michael Saylor,has staked its future on โBitcoin,accumulating a โฃsignificant digital asset treasury,and โขnow faces scrutiny as the โคvalueโค of โฃits holdings-and its stock-falls.
MicroStrategy’s strategy,initiated in 2020,involves acquiring and holding Bitcoin as its primary treasury reserve โฃasset.As โขof november 17,โฃ 2025, theโ company’s bitcoin holdings were valued atโ nearly $6 billion, representingโค a โsignificant portion of its overall asset base. This approach โallows โคStrategy โto obtain credit against โthe surplus value,similar to how companies leverageโ real estateโ holdings.
however, recent marketโ volatility has put pressure on the company. โฃWhile Strategy maintainsโค a “healthy overall asset โฃtoโค debt ratio” โคandโ claims to have โข”planned โforโ this,” the โฃcurrent downturn is testingโ the viability of its model.
The evolving landscape of digital asset treasury companies-which strategy’s CEO, Bea, likens to a newโฃ type of bank-is also โฃpresenting challenges.โ Some companies,โค like ReserveOne, are utilizing cryptocurrencies like Ethereum, whichโ do provide yield, offering a financial โbuffer not โavailableโฃ with Bitcoin.Bea acknowledged the โpotential impact of MSCI’s impending move โคto exclude digital โasset treasury companies (DATs) โขfrom indexes, stating that these firms “need time to evolve.”
Cosmo Jiang,โ a partner at Panteraโ Capital, believes digital asset treasuries โฃwill become a permanent fixture in finance, noting the “genesisโฃ of โฃa โขwhole new category of business” poised to benefit from decentralized finance. โขThough, Jiang alsoโ cautioned โขin remarks toโฃ Bloomberg that the sector isโ currently at a low โpoint,โ but thatโข the current struggles of Strategy and similar โfirms are โtemporary, stating,โ “We’re at the point where all the bad news is out there, andโข the bears areโค the loudest voicesโ in the room.”
Jiang predicts that only “twoโ or threeโ large winners” will emerge for each โฃmajor cryptocurrency, emphasizing the need for deep experience in capital markets and corporate finance โbeyond simply โholding tokens. The coming months will be โฃcrucial in determining whether Strategy can solidify its position as one of those winners.
Recent institutional adoption of bitcoin, includingโฃ investments by โคuniversity endowments and Vanguard’s decision to list โขBitcoinโ and other crypto โฃETFs, signals growingโข mainstream acceptance.However, these developments offer โlittle immediate relief to MicroStrategy as it navigates the current market pressures.