Shares of Strategy, formerly known as MicroStrategy, have plunged 30% since former CEO Michael Saylor appeared on the cover of Forbes. The stock declined from $340.09 on Jan. 30 to $239.27 on March 10, including a sharp 17% drop on the latter date, amid a broader sell-off in the tech sector.
The market downturn coincided with a 4% slide in the Nasdaq Composite, as concerns over an economic recession intensified. The Atlanta Federal Reserve projected a -2.4% GDP growth rate for Q1 2025, while increasing trade tensions further unsettled investors. The Fear & Greed Index dropped to “Extreme Fear,” registering a score of 24.
Strategy Pushes Forward with Bitcoin Investments Despite Market Slump
Despite the steep decline in its stock price, Strategy continues to double down on Bitcoin. On March 10, the company announced plans to raise $21 billion for corporate initiatives, including additional Bitcoin acquisitions. Prior to that, on Feb. 24, Strategy acquired 20,356 BTC for nearly $2 billion.
While Bitcoin experienced its worst weekly decline on March 10, Strategy’s holdings remain profitable, with an 18.9% gain at an average purchase price of $66,423 per coin.
The company’s aggressive Bitcoin strategy has drawn both admiration and skepticism. Supporters argue that Bitcoin’s long-term value proposition justifies the move, while critics warn of financial risks, likening Strategy’s approach to a Ponzi scheme.
Investor Hedgex.eth previously cautioned in November that Saylor’s reliance on leverage could ultimately damage Bitcoin’s stability. However, Strategy’s bold stance has influenced other firms, such as Japan’s Metaplanet, whose stock surged 4,800% in a year after implementing a Bitcoin-based treasury model.
As Strategy remains unwavering in its Bitcoin commitment, the debate continues: Is this a visionary investment, or a financial gamble waiting to unravel?
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