Strategy's Bitcoin Bubble Bursts: Stock Falls Below Crypto Holdings

Strategy's stock has fallen significantly, now trading below the value of its Bitcoin holdings. The company, once valued at 3.4 times its Bitcoin, is now worth less than half that amount.

The collapse in the premium paid for Strategy's stock has dragged down the price, with the stock falling 79% from its July 2025 high of $457. Meanwhile, Bitcoin itself has dropped only 51% over the same period.

The company is facing a significant challenge as it tries to cover its annual $1.7 billion cash dividend on its preferred shares. To do this, Strategy has started selling some of its Bitcoin holdings for the first time since 2022.

However, even in a worst-case scenario where Bitcoin crashes to $26,600 and Strategy is forced to sell coins to cover its obligations, the company would still be able to survive. In fact, it would actually emerge with more Bitcoin than it started with.