Will Strategy Stock Keep the Losing Streak Going in 2026?

Core Viewpoint - Strategy (formerly MicroStrategy) has shifted its focus from declining software businesses to cryptocurrency investments, particularly Bitcoin, as a new growth driver [1]. Group 1: Performance Comparison - Over the past five years, Strategy has outperformed Bitcoin with gains of 196% compared to Bitcoin's 169% [2]. - However, in the last year, Bitcoin has remained roughly flat, while Strategy's stock has lost more than half of its value [2]. Group 2: Crypto Treasury Model - Strategy's crypto treasury model involves issuing new shares and taking on debt to acquire Bitcoin, which previously led to significant stock gains during a Bitcoin bull run [3][4]. - The company's market capitalization is heavily tied to Bitcoin's value, making its valuation closely linked to Bitcoin pricing trends [4]. Group 3: Impact of Bitcoin's Performance - The flat performance of Bitcoin over the last year has resulted in a dilutive impact on shareholders and increased debt without corresponding stock gains [5]. - If Bitcoin continues to trade sideways or experiences modest gains in 2026, Strategy's stock may face further sell-offs, while a substantial decline in Bitcoin could lead to a significant drop in Strategy's stock price [6].