Michael Saylor”s commitment to Bitcoin is facing intense scrutiny as the digital currency”s recent downturn has severely impacted Strategy”s (MSTR) stock value. Bitcoin has plummeted by over 36% from its peak, dragging down the company”s shares by more than 67% since early 2025, and over 40% just in the past week.
Saylor has attempted to reassure investors amidst the chaos, asserting his unwavering belief in Bitcoin”s long-term potential. He tweeted, “I Won”t ₿ack Down,” signaling his continued support despite the current challenges. However, the situation has raised alarm among analysts and investors, particularly given the increasing risks of delisting from major stock indices like the Nasdaq 100 and MSCI USA.
The company”s stock performance often mirrors Bitcoin”s trajectory, meaning that a decline in MSTR”s price could further dampen investor sentiment across the broader cryptocurrency market. This week, in a surprising move, Strategy paused its usual Bitcoin accumulation strategy, a significant change after months of consistent purchases. This pause comes as Bitcoin”s value dipped to around $83,000, putting the average acquisition cost of Strategy”s 649,870 BTC at approximately $74,433 perilously close to its break-even point.
Analysts have pointed out that if Bitcoin were to drop by another 20%, Strategy could face substantial unrealized losses. The company”s recent stock volatility has raised concerns about its eligibility to remain listed on major indices, which may force passive funds to divest their holdings, potentially resulting in billions in withdrawals.
Prominent short-seller Jim Chanos has expressed his disapproval of Strategy, indicating intentions to liquidate his short positions. He noted a decline in the multiple-to-net-asset-value (mNAV) ratio of MSTR, which has decreased from 2.5x to 1.16x since December. Chanos predicts this figure will continue to drop, aligning more closely with the company”s Bitcoin asset valuation.
JP Morgan has also issued warnings regarding the possibility of delisting, emphasizing that if a company”s digital asset holdings exceed 50% of total assets, it may not qualify for inclusion in traditional indices. Despite these challenges, Saylor remains optimistic, contending that Strategy”s business model can withstand significant fluctuations in Bitcoin”s value.
Saylor maintains that the company, which has a $500 million software arm, has a unique treasury model that leverages Bitcoin as productive capital. He believes that even a drastic drop in Bitcoin”s price would not threaten the company”s operations as it only requires a modest growth rate to meet its financial obligations.
While the market value of Strategy”s Bitcoin-focused approach is under significant pressure, Saylor”s steadfast conviction in the asset class continues to shape the company”s narrative. His assertion that volatility is “Satoshi”s gift to the faithful” underscores his belief in the long-term potential of Bitcoin, despite the current turbulence.
