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Strategy's shares have dropped by 30% since Saylor appeared in Forbes magazine.
The Bitcoin buying strategy employed by Strategy has sparked widespread controversy and led to the emergence of copycats around the world.
Shares of Strategy (MSTR) have dropped by 30% since its CEO and former CEO, Michael Saylor, appeared on the cover of Forbes magazine, according to stock price data from Yahoo Finance.
From January 30 to March 10, Strategy's shares fell from $340.09 to $238.25. The decline includes a 17% drop on March 10 amid broader sell-offs in the tech stock market.
One-day stock price strategy. Source: Yahoo Finance
According to Yahoo Finance, the Nasdaq Composite Index, to which Strategy belongs, fell by more than 4% on March 10. Renewed recession fears have arisen, with the Atlanta Fed forecasting a negative growth of -2.4% in GDP for the first quarter of 2025, alongside increasing rhetoric about trade wars, fueling fear among stock market investors. CNN's fear and greed index settled at "16" for the day, indicating "extreme fear."
Despite the drop in stock price, Strategy remains steadfast in its commitment to the Bitcoin strategy. The company announced on the same day plans to raise an additional $21 billion "for general corporate purposes, including the acquisition of Bitcoin and working capital." On February 24, Strategy acquired 20,356 Bitcoin for nearly $2 billion.
Bitcoin
$80,558
Related: MicroStrategy, now known as "Strategy," reports a net loss of $670 million in Q4.
Although Bitcoin recorded its largest weekly drop in history on March 10, Strategy's investment in Bitcoin remains profitable at 18.9%. The company purchased its Bitcoins at an average cost of $66,423, which is significantly lower than the asset's price at the time of writing this report.
While countless entrepreneurs have graced the cover of Forbes magazine over the years, some notable individuals have also found themselves embroiled in controversy after being highlighted. Among them is former FTX CEO Sam Bankman-Fried, who was sentenced to 25 years in prison for committing a range of financial crimes.
Strategy stirs controversy and spawns copycats
Strategy's move to acquire more Bitcoin through issuing shares and using debt has met with its fair share of supporters and critics in the crypto space. Some see it as a genius move, betting on the track record of digital assets that has seen them rise from nothing to a market value of $1.56 trillion in 15 years.
Others were not so kind, comparing the company to a ticking time bomb or a Ponzi scheme. In November, cryptocurrency investor HedgeX.eth described it as the latter, writing on X that Saylor "will cause more harm to Bitcoin than anyone else using infinite leverage." Haralabos Voulgaris wrote on X that "at some point, the next 'unexpected' collapse of Bitcoin is likely to be related to MSTR."
However, Strategy's move has led to the emergence of copycats in the business world, with some companies buying Bitcoin for their bonds and witnessing a surge in investor enthusiasm. One such company is Metaplanet, whose stock price has increased by 4800% in 12 months after announcing its BTC buying strategy.