Strategy Stock: Bitcoin’s Rollercoaster & Your 401(k)

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So, Strategy (formerly known as MicroStrategy, which, let’s be honest, sounds like a rejected 90s tech startup name) had a week. A week. It dipped as much as 25.5%, according to the people who track these things – which, frankly, feels like a full-time job in itself. Basically, it’s a company that decided to bet the farm on Bitcoin, and right now, the farm is looking a little…flooded. It’s like when you decide to make a whole lasagna for a potluck and then discover everyone else brought salad.

As of this afternoon, Strategy is down around 11.2% for the week and a whopping 71% from its all-time high. Which, you know, is a number. Let’s unpack this, because sometimes I feel like I need a decoder ring just to read a stock ticker. Is it a buy? Well, that depends. Do you enjoy financial anxiety?

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Falling Bitcoin, Rising Panic (and Interest Rates)

Strategy’s business model is…unique. They raise money and buy Bitcoin. That’s it. It’s a leveraged play, basically saying, “We’re going to amplify your exposure to a highly volatile asset.” In 2025 alone, they sucked up $25 billion in capital – 8% of all U.S. equity issuance. That’s like ordering every appetizer on the menu and then complaining about the bill.

They now hold 713,000 Bitcoin – over 3% of the 21 million that will ever exist. Which sounds impressive until you realize their average cost basis is $76,000 per coin, and the current price is…less than that. This isn’t just a dip; it’s a full-on existential crisis for the company’s strategy. It’s like building a house on a foundation of Beanie Babies.

Right now, Strategy trades below the net asset value of its Bitcoin holdings, which sounds good until you remember they also have debt to service. Investors are getting nervous that if Bitcoin drops further, Strategy will be forced to unwind its positions at a loss, triggering a cascade effect. It’s the financial equivalent of a domino rally, and nobody wants to be the last domino.

So, Should You Buy the Dip? (Don’t Ask Me, I’m Just a Macro Strategist with Opinions)

Historically, Strategy made money by issuing stock at a premium and then using that money to buy Bitcoin. But that premium has evaporated. Now, issuing more stock would actually dilute their Bitcoin holdings per share – their favorite metric. It’s like trying to make a smaller cake by adding more ingredients.

This whole thing raises serious questions about the sustainability of their business model. If you’re bullish on Bitcoin, maybe just buy Bitcoin. Skip the middleman. It’s like ordering directly from the bakery instead of going through a chain restaurant. You get more cake, and fewer corporate overhead costs.

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2026-02-06 21:24