Strategy shares plunge as Bitcoin treasury model comes under pressure.

Companies holding Bitcoin as a treasury asset, led by Strategy (MSTR), are facing significant pressure as Bitcoin's volatile price in 2025 makes full-year performance nearly flat or slightly negative. MSTR stock has fallen more than 60% from its year-high, reflecting the amplified impact of Bitcoin's leveraged pricing model, amidst a dramatic surge followed by a deep correction in BTC price.

Pressure also stems from increasingly high funding costs, including interest on convertible bonds and preferred stock dividends, while continuous new share issuances dilute existing shareholders. Strategy's NAV premium is currently in negative territory, indicating that the market is undervaluing the stock compared to its Bitcoin holdings, a stark contrast to the previous bull market period.

According to CryptoQuant, many other Bitcoin treasury companies that raised capital through PIPE have also seen their stock prices plummet, often returning to near their issuance levels. If Bitcoin does not soon enter a sustainable bull cycle, this group of stocks risks further weakening as institutional money flows shrink and investors shift to prioritizing more stable assets.

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