Publicly traded companies that adopted Michael Saylor’s Bitcoin acquisition strategy are experiencing significant declines in stock value, with median prices plummeting 43% year-to-date, despite a rising broader market. According to Bloomberg, more than 100 companies shifted their business models to focus on cryptocurrency holdings in the first half of 2025, borrowing billions to invest in digital assets. While their stock prices initially surged past the value of these assets, this optimistic trend was abruptly reversed as market conditions shifted.
Saylor’s approach, which transformed his software firm into a cryptocurrency treasury, appeared highly successful until mid-2025. High-profile investors, including members of the Trump family, were drawn into this burgeoning sector. A striking example is SharpLink Gaming, which notably restructured its operations, appointed an Ethereum co-founder as chairman, and announced large crypto investments. Initially, its stock soared 2,600% within days but later experienced an 86% decline, leaving its market capitalization trailing the actual value of its Ethereum holdings.
Data from Bloomberg tracking 138 digital asset treasuries in the U.S. and Canada indicates that the median share price has significantly underperformed Bitcoin, which has only seen a modest 7% decline this year, while the S&P 500 and Nasdaq 100 reported gains of 6% and 10%, respectively. Strategy stock prices have dropped 60% from their highs in July, although they have witnessed a staggering 1,200% increase since the firm began acquiring Bitcoin in August 2020.
Expert analysis from B. Riley Securities suggests that investors are beginning to recognize the lack of yield from these cryptocurrency holdings, especially when they are just sitting idle. The problems facing these companies stem mainly from their funding strategies. Many, including Saylor’s Strategy, issued large quantities of convertible bonds and preferred shares to finance their cryptocurrency acquisitions. This has led to more than $45 billion being raised within the sector, but the interest and dividend obligations from these debt instruments present serious challenges.
For instance, Strategy faces annual fixed obligations in the range of $750 million to $800 million due to its preferred shares. Companies that opted for smaller and more volatile cryptocurrencies have suffered severe losses as well, with some dropping over 85% from their peak values. Strategy has attempted to mitigate funding concerns by raising $1.44 billion through stock sales to cover upcoming dividend payments.
The situation has escalated, as CEO Phong Le indicated that the company might need to sell Bitcoin to meet its dividend commitments if its market value falls below the value of the held cryptocurrencies. This represents a significant departure from Saylor’s earlier stance of steadfastly holding Bitcoin, highlighting the precarious nature of the current market environment.
During a discussion at Binance’s Blockchain Week, Saylor elaborated on their revised strategy, explaining that the company would sell equity when its stock trades above the net asset value of Bitcoin. Conversely, if the stock trades below that value, they would consider selling Bitcoin or its derivatives. This prospect has sparked concerns about a potential downward price spiral, where forced sales of cryptocurrencies could further depress both token values and company valuations.
The firm’s monthly Bitcoin acquisitions have dramatically dropped from a peak of 134,000 BTC in 2024 to just 9,100 BTC in November, with only 135 BTC added so far in December. Currently, Strategy holds around 650,000 BTC, valued at over $56 billion, constituting more than 3% of Bitcoin’s maximum supply. Market observers are anxious that leveraged traders could face margin calls if they struggle to manage their investments in these companies, potentially leading to broader sell-offs across the market.
Despite having established a $1.4 billion reserve fund to cover short-term dividend obligations, Strategy’s shares are on track for a 38% decline this year, illustrating the stark reality facing those who mimicked Saylor’s aggressive Bitcoin strategy.
