Strategy Shares Drop 30% Following Saylor's Forbes Cover Feature

Shares of Strategy (MSTR) have experienced a significant decline of 30% since the company’s executive chairman and former CEO, Michael Saylor, appeared on the cover of Forbes. Stock price data from Yahoo Finance shows that between January 30 and March 10, Strategy’s shares fell from $340.09 to $238.25.

This sharp decrease includes a notable drop of 17% on March 10, coinciding with a broader sell-off in the technology sector. On the same day, the Nasdaq Composite Index, which includes Strategy, also fell by over 4%.

Investors are grappling with renewed fears of a recession, as the Atlanta Fed has projected a concerning -2.4% growth in gross domestic product for the first quarter of 2025. Additionally, escalating concerns about potential trade wars are further unsettling the equities market, with CNN’s Fear & Greed index reflecting an ‘Extreme Fear’ rating of ‘16’.

In spite of the declining stock price, Strategy is maintaining its strong commitment to a Bitcoin (BTC) strategy. On the same day as the stock plunge, the company announced plans to raise an additional $21 billion for various corporate purposes, which include acquiring more Bitcoin and supporting working capital. Earlier, on February 24, Strategy made a significant purchase of 20,356 Bitcoins at a cost of nearly $2 billion.

Related: MicroStrategy, now ‘Strategy,’ records $670M net loss in Q4

Despite Bitcoin experiencing its largest weekly drop in history on March 10, Strategy’s investment in Bitcoin still shows a profit of 18.9%. The company acquired its Bitcoin at an average cost of $66,423, which remains significantly lower than the current market price.

Over the years, numerous entrepreneurs have been featured on the Forbes cover, but not all have emerged unscathed from controversies stemming from their spotlight moments. A notable example is the former FTX CEO Sam Bankman-Fried, who received a 25-year prison sentence due to various financial crimes.

Debate Surrounding Strategy's Bitcoin Acquisition

Strategy’s approach to acquiring additional Bitcoin through stock issuance and debt has ignited various opinions within the cryptocurrency community. Some view this decision as a brilliant move, reflecting confidence in Bitcoin’s impressive history, which has seen the asset rise to a market cap of $1.56 trillion over a span of 15 years.

Others, however, are less optimistic and have criticized the strategy. Detractors have described the company as a ticking time bomb or even likened it to a Ponzi scheme. One crypto investor, known as Hedgex.eth, voiced this concern on X by stating that Saylor might inflict more harm on Bitcoin using excessive leverage. Another commenter, Haralabos Voulgaris, suggested that future Bitcoin market turmoil could be closely associated with MSTR’s actions.

Despite the criticism, Strategy has set a trend, inspiring other companies to adopt similar Bitcoin purchasing strategies for their treasuries, which has, in some cases, led to a surge in investor interest. Metaplanet is one such company that witnessed its share price skyrocket by 4800% in just 12 months following the announcement of its Bitcoin buying strategy.

Magazine: Asia Express: ‘China’s MicroStrategy’ Meitu sells all its Bitcoin and Ethereum

shares, Saylor, Forbes