February 11 News, Michael Saylor recently responded to the continued decline in the stock price of Strategy (MSTR), stating that the fundamental reason is not due to company operations or execution issues, but rather because Bitcoin has entered a clear bear market phase over the past four months. As a highly “Bitcoinized” publicly traded company, MSTR’s stock price movement is almost entirely dependent on the Bitcoin market cycle, a structural characteristic that has been amplified in this round of correction.
Looking back at the market, Bitcoin once surged above $110,000 by the end of 2025, but then momentum weakened, and the price retreated to around $70,000, with the previous gains largely retraced. The prolonged decline caused market sentiment to turn sharply negative, putting overall risk assets under pressure, with companies most exposed to Bitcoin bearing the brunt.
Strategy is not a traditional software company; its valuation does not rely on revenue or profit multiples but is highly synchronized with Bitcoin’s price. As of early 2026, the company holds over 250,000 Bitcoin and continues to increase its holdings through debt and equity financing. This highly leveraged structure means that when Bitcoin declines, MSTR’s stock price often falls even more.
The core reason lies in the leverage effect. Fixed debt costs and rising market concerns over potential equity dilution quickly elevate risk premiums. Every Bitcoin correction is “amplified” in MSTR’s stock price, resulting in more volatile swings than the spot market.
Although some investors are surprised by the sharp reversal in market sentiment, most analyses suggest that MSTR’s movement reflects Bitcoin’s macro cycle rather than deterioration in company fundamentals. Michael Saylor has long positioned Strategy as a “Bitcoin treasury company,” which means its stock price inherently possesses high elasticity and high risk.
For investors, holding MSTR is essentially a leveraged bet on Bitcoin. If BTC enters a rebound or sideways upward phase, MSTR may quickly recover its losses; if the bear market continues, the stock price will still face downward pressure. Rational risk assessment and clear strategic planning are more important than emotions.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin L1 smart contract platform OP_NET completes $5 million funding round, with Further leading the investment
Gate News Announcement, March 12th, Bitcoin L1 native smart contract platform OP_NET announced the completion of a $5 million funding round. This round was led by Further, with participation from ANAGRAM, Arcanum Capital, Humla Ventures, Morningstar Ventures, G20 Ventures, and UTXO
GateNews3m ago
21Shares Analyst: BTC May Fluctuate Between $68,000 and $74,000 in the Short Term
21Shares strategist Matt Mena pointed out that March CPI data has been absorbed by the market. In the short term, BTC is expected to fluctuate between $68,000 and $74,000. After breaking above $75,000, it may enter the $75,000 to $80,000 range. Historically, BTC often rebounds more than 15% after geopolitical shocks, and a restart of rate cuts could accelerate the recovery.
GateNews16m ago
Paraguay issues Resolution No. 47/26 requiring platforms to provide detailed reports on cryptocurrency transaction information
Gate News Update: On March 12, the Paraguay National Tax Service issued Resolution No. 47/26 to strengthen tax regulation on Bitcoin and cryptocurrencies. The new regulation requires crypto platforms and administrators to report detailed information on each user transaction, including wallet addresses, networks used, and transaction hashes. The scope of regulation covers cryptocurrency donations, inheritances, and NFT transactions exceeding $5,000 annually. This measure aims to incorporate digital assets into Paraguay's national tax system while complying with the Financial Action Task Force (FATF) anti-money laundering recommendations.
GateNews30m ago
BlackRock this morning transferred approximately 2,653 Bitcoins from a certain CEX, valued at over $187 million.
Gate News Report, March 12, Arkham monitoring data shows that BlackRock transferred a total of approximately 2,653 Bitcoins from a certain CEX through its Bitcoin ETF IBIT this morning, valued at $187.42 million.
GateNews30m ago
Bitcoin Core main development branch merges the Cluster Mempool update, which will be included in version 31.0
Bitcoin Core, the Bitcoin client, merged the Cluster Mempool update on March 12th, which is expected to be included in the upcoming 31.0 version. This update will redesign the way nodes handle unconfirmed transactions to improve block packing efficiency and optimize fee calculation. Version 31.0 is expected to be released in the second half of 2026.
GateNews33m ago
