Even if Bitcoin rose 3%, Strategic stocks have fallen 4% over the past month, raising new questions about Michael Saylor’s multi-billion dollar encryption. Since 2020, the company has been buying Bitcoin using a combination of borrowed money and new stocks.
That pivot has pushed software companies into the spotlight as a bitcoin-heavy operation. Since Bitcoin Buying Spree began, stocks have skyrocketed 2,800%. But now, numbers are heading in the wrong direction, and confidence in the strategic model is beginning to crack.
Other companies that copied Saylor’s approach are bleeding more severely. Japanese hotel operator Metaplanet lost 36% in the same 30-day stretch. KindlyMD, a healthcare startup that currently holds Bitcoin, has fallen by 87%. Medical technology company Semler Scientific has dropped by 12%.
Even Trump Media & Technology Group, currently linked to the Bitcoin Treasury, lost 8%. New crypto vehicles by Cantor Fitzgerald tied to Twenty One Capital fell 17% before it was revealed. Twenty One is supported by SoftBank and Tether.
Public Bitcoin holders lose value when the market cools
All these companies saw wild profits in the beginning of 2025, so the recession is putting pressure on this “Bitcoin Treasury” trend. Monness, Crespi, Hardt & Co. “At certain point there are too many strategies to pursue the same promised land and pursue finite investor demand for similar exposures,” said GusGalá, an analyst at the company.
The rush was driven by three things: rising crypto prices, slower rules from the Trump administration, and changes in accounting that made Bitcoin more attractive on paper.
But as investor and television figure Kevin O’Leary explained, “The majority of the market cannot hold Bitcoin, but they can hold stocks.” So this is why institutions prefer crypto-holding stocks instead of holding assets directly.
Norway’s Nors Bank, the world’s largest sovereign wealth fund, owns a strategy of 2.9 million shares. I do not hold Bitcoin ETFs. State-run retirement systems like CalPers also own strategic inventory, but avoid direct crypto exposure.
So far, over 180 public companies have added Bitcoin to their books. This is 5% of all existing Bitcoin. Of these, 94 followed the strategy playbook.
But about 25% of them are now valued under the coins they have, says Vetle Lunde, head researcher at K33 Research. “It was a very wild ride,” Vetle said.
This price drop could lead to a bigger problem. If these companies are less valuable than their own Bitcoin, it can lead to investor anxiety.
Skepticism is growing around future debt financing of strategy
Even strategy feels pressured. Short-seller Jim Chanos, known for calling Enron, said of Bloomberg Strange lot Podcasts, strategies “no point” that trades are traded higher than Bitcoin itself.
Analyst Gas added that there may be a lack of strategies to continue funding these large purchases. The company relies heavily on convertible obligations, allowing shareholders to trade stock obligations if the stock is popped out.
However, recent bond trading is not looking good. The company’s 2024 convertible notes are only valuable if the stock doubles to $672 and are currently trading below face value.
It’s not easy to raise high-quality debts. Gus said the strategy’s profits are unrealized crypto, making it unsettled in the bond market. Issuing more equity will only dilute shareholders.
“As long as Bitcoin goes up, everything will work,” Gus said. “But then, when Bitcoin stops it, if it stops it, it stops working,” he added that small and medium-sized businesses that try to mimic the model of strategy, especially those without actual business operations, are in even worse state.
“They are likely to struggle more,” Gus said, “To raise capital, Michael Saylor sells his strategy and promotes premiums to multiples of stocks, so he sells himself.”
Not everyone is down. Bitcoin in the US, a crypto miner backed by Eric Trump, has risen 16% this month. GameStop has now won 12% as it holds Bitcoin. Still, even large companies are digging into it.
Trump’s friend David Bailey told investors:
