Why Strategy (Formerly MicroStrategy) Stock Collapsed This Week

Strategy, the company formerly known as MicroStrategy, saw its shares plunge about 28% this week, according to S&P Global Market Intelligence. The decline followed the controversial move of selling Bitcoin from its balance sheet to fund 11.5% dividends on outstanding preferred stock, a tactic investors found unsettling while Bitcoin traded lower. With roughly 4% of the world’s Bitcoin outstanding on Strategy’s books, valued at about $51.3 billion, the company also carries unrealized losses near $10 billion as Bitcoin hovers near $59,000. This combination underscored the stock’s crypto-driven risk and sparked discussions about the viability of Strategy’s strategy.