Strategy, formerly MicroStrategy, is one of the biggest Bitcoin advocates. For years, the business intelligence firm has been buying BTC, adding the digital gold into its balance sheet. So far, MicroStrategy is the largest holder of BTC with over 687,000 BTC worth over $63Bn.
While their strategy has been an inspiration to many other public companies, including MetaPlanet, MicroStrategy is facing challenges: The Bitcoin price has, in recent months, been stalling, even dropping. As a result, the MSTR stock has been under immense selling pressure, dropping at a faster rate than Bitcoin itself.
When writing, the MicroStrategy stock is changing hands above $173. It is down -53% year-to-date. Meanwhile, at spot rates, the Bitcoin price is down just +11% in the last year. Historically, the MSTR stock traded at a 2x+ premium to its Bitcoin holdings.
In mid-January 2026, that premium has collapsed, with the stock occasionally trading at a discount to its Net Asset Value (NAV); a rare event that signals investor fear.
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Why is MicroStrategy MSTR Stock Falling Faster Than Bitcoin
Given this divergence, it is no wonder that the Bitcoin-focused public company is under fresh scrutiny. Interestingly, critics are heavy on MicroStrategy just when more public firms are actively buying Bitcoin, adding them to their balance sheets.
This pessimism on MicroStrategy makes sense. While it is a business intelligence firm, it no longer acts like a normal software company. It operates as a Bitcoin treasury company, which means it uses stock sales and borrowed money to buy Bitcoin and hold it long term. Criticism of their plan has intensified due to recent risks that could decimate the firm and their Bitcoin strategy.
Recently, the MSCI reviewed whether “digital asset treasury” firms with more than +50% of their assets in crypto as “funds” rather than “operating companies” should be removed. This reclassification will directly impact MicroStrategy. JPMorgan estimated that a removal from the MSCI index could trigger up to $8.8Bn in passive outflows.
What’s more? To fund its recent purchase of 13,627 BTC in early January, the company issued over $1.1Bn in new stock. While they are buying more BTC, the constant issuance of new shares dilutes existing shareholders. If the Bitcoin price doesn’t grow faster than the share count, the “Bitcoin-per-share” value actually drops.
And it gets worse. In Q4 2025, they reported $17.44Bn unrealized loss. Now, critics are pointing to the company’s legacy software business, which generates only about $125M in operating cash flow. This is nowhere near enough to service the billions in debt used to buy the Bitcoin.