Is MSTR’s Bitcoin Treasury Strategy No Longer Working?

Core Insights - Strategy (NASDAQ:MSTR) pioneered the Bitcoin treasury company strategy, which previously resulted in mutual gains for both Bitcoin and the company's stock [2] - The correlation between Bitcoin's price and Strategy's stock has weakened significantly, with Bitcoin down 27% from its October 2025 peak, while Strategy's shares have dropped over 64% [3][7] Bitcoin Market Dynamics - Bitcoin is currently trading around $90,200, down from recent highs, facing significant headwinds [4] - Proponents argue Bitcoin serves as a store of value, akin to "digital gold," but market behavior is increasingly challenging this view as gold prices rise amid geopolitical tensions [4][5] Investor Sentiment and Company Performance - Strategy's recent acquisition of 22,305 Bitcoin for $2.13 billion has not positively impacted its stock, which fell nearly 7% in midday trading [3][7] - The acquisition was funded through $1.83 billion in common stock sales and $294.3 million from perpetual preferred equity, leading to ongoing shareholder dilution [6][7] - Strategy's software business generates annual revenue between $460 million and $500 million, which is insufficient to cover preferred stock dividends approaching billions [7]