The world's largest corporate holder of Bitcoin (BTC), Strategy (Nasdaq: MSTR), formerly MicroStrategy, has been facing a challenging phase of late. The ongoing crypto market crash has shattered the hopes of both institutional and retail traders invested in digital assets, and even Strategy has not been able to escape the heat. Related: Michael Saylor responds to JPMorgan’s MSCI delisting warning MicroStrategy under pressure First, the legendary short-seller Jim Chanos came down heavily on the company, ...

Core Insights - The digital asset treasury (DAT) model has gained significant traction in 2025, with many companies adopting it and experiencing substantial stock price increases [5][6] - Strategy, formerly MicroStrategy, is a leading player in the DAT space but has seen its stock decline despite its pioneering status and substantial Bitcoin holdings [4][7] Company Overview - Strategy is valued at a market cap of $94.7 billion and focuses on acquiring and managing Bitcoin as its core treasury reserve asset, providing investors with exposure to Bitcoin [3] - The company has accumulated Bitcoin through equity and debt financing, positioning itself as both an inflation hedge and a potential value appreciation vehicle [3] - As of its latest report, Strategy holds 628,791 Bitcoins, representing about 3% of Bitcoin's total supply, with a total acquisition cost of $46.1 billion [13] Financial Performance - In Q2 2025, Strategy reported operating income of $14 billion, a year-over-year increase of over 7,000%, leading to a net income of $10 billion or $32.6 per share on an adjusted basis [12] - The company has already met its 2025 Bitcoin yield target of 25%, raising its guidance to project yields of up to 30% and anticipating $20 billion in gains from Bitcoin holdings this year [14] - The software business generated revenue of $115 million in Q2, with the subscriptions segment growing 69.5% year-over-year [15] Market Dynamics - Despite the hype around the DAT model, leading companies like Strategy have seen stock price declines, attributed to Bitcoin's pullback from record highs [7] - J.P. Morgan analysts have expressed concerns about the sustainability of the crypto treasury model, citing risks of overcrowding and investor fatigue [8] - Strategy was excluded from the S&P 500 index rebalance, which could have resulted in $2-3 billion in passive institutional inflows [9] Investor Sentiment - Wall Street analysts maintain a bullish outlook on Strategy, with a consensus rating of "Strong Buy" and a mean price target suggesting a 70.5% upside potential from the current price [16] - The recent pullback in Strategy's stock is viewed as an attractive entry point for investors who believe in the continuation of the Bitcoin rally [17]