How Strategy Stock Fell 34.3% Last Month

Core Insights - Strategy's stock price is highly correlated with Bitcoin's performance, leading to significant losses for shareholders when Bitcoin declines [1][8] - The company, formerly known as MicroStrategy, positions itself as a Bitcoin Treasury Company, aggressively increasing its Bitcoin holdings through loans and stock sales [2][9] - Strategy's stock has historically amplified Bitcoin's price movements, nearly doubling Bitcoin's gains over the past three years [3] Company Strategy - Strategy is not designed to function like a traditional Bitcoin ETF, as it actively seeks to increase shareholder exposure to Bitcoin rather than merely reflecting Bitcoin's price [5][6] - The company's focus on Bitcoin has led to a neglect of traditional revenue generation, with Saylor prioritizing Bitcoin acquisitions over dollar-based profits [9] Market Performance - In November 2025, Bitcoin fell by 16.1%, while Strategy's stock plummeted by 34.3%, illustrating the amplified risk associated with the company's strategy [1][8] - The stock's volatility is expected to continue, particularly in risk-averse market conditions, where declines in Bitcoin prices lead to even steeper drops in Strategy's stock [10] Financial Metrics - Strategy's current market capitalization stands at $52 billion, with a gross margin of 75.93% [7]