Michael Saylor’s Strategy shares are down nearly 60% in a year. From $300 in October to about $170 today. That’s quite a drop, especially considering Saylor’s constant purchases and all-in on BTC. Critics shout: “See? The Bitcoin model is falling apart!” But is it really?
The devil is in the details
Yes, the chart looks brutal. But when you take a closer look, you’ll see something surprising – Strategy is still sitting on a solid profit. The company purchased its 649,870 BTC at an average price of $74,430. Bitcoin today? Approximately $86,000. This is almost a 16% profit on paper, despite the stock market massacre.
And the long-term results? In five years, Strategy shares have increased by more than 500%. Apple at this time? Only 130%. Microsoft? 120%. Even over a shorter, two-year period, Strategy demolishes the technological giants with a score of 226% vs. 43% (Apple) and 25% (Microsoft).
Why this drop in shares?
BitMine’s Tom Lee has a simple answer: hedging. Saylor’s Strategy has become the most convenient tool for hedging cryptocurrency positions. Liquid options market, easy short, i.e. the perfect combo for big players who need to quickly hedge their long positions in cryptocurrencies.
Someone could use the MicroStrategy options chain to hedge their entire cryptocurrency portfolio
– explains Lee.
Strategy has become an inadvertent safety valve for the entire digital asset market, absorbing investor anxiety that does not necessarily have to do with the Bitcoin strategy itself.
Saylor persists
Despite the declines, Michael Saylor bought another 8,178 BTC for USD 835.6 million on November 17 – much more than in the previous weeks (400-500 coins). On the X platform he wrote briefly: “don’t back down”. The value of the entire portfolio? Nearly USD 56 billion.
But the risk exists. Kyle Rodda from Capital.com warns: if BTC drops sharply, Strategy may be forced to liquidate some of its holdings, which will create a vicious cycle of declines.
In the long term, buying MSTR stock may be worse than owning actual Bitcoin.
– notes the analyst.
Meanwhile, inflows into digital treasuries (DAT) fell from $11 billion in September to just $500 million in November. The liquidity is drying up, but Saylor goes va banque. Madness or genius? The market will verify.
