Strategy Stock Plunges 55% as Bitcoin Price Tests $88,000 Low

Bitcoin price has skidded from its December 2024 peak of $108,000 to a shaky $88,000-$97,000 range by February 25, 2025—a drop of up to 19%. Investors are rattled.

Strategy (formerly MicroStrategy) , the biggest corporate Bitcoin holder, has seen its stock (MSTR) crater over 55% from its recent highs.

The market’s red ink has traders asking: Can Strategy’s $43.7 billion Bitcoin stash survive this storm? Here’s the breakdown.

Strategy owns 478,740 BTC as of February 10, 2025. That’s $43.7 billion at today’s price of roughly $91,250 per coin. The company, led by Michael Saylor, spent $27.954 billion to buy in at an average of $62,473 per Bitcoin .

Data shows a hefty unrealized gain—$15.746 billion. But the market isn’t cheering. Bitcoin’s recent dip and MSTR’s stock slide signal trouble for Strategy’s bold play, reports the Kobeissi Letter on X.

Strategy’s Bitcoin haul didn’t come cheap. The company has racked up $8.2 billion in debt, mostly through convertible notes due in 2028.

That’s a 19% leverage ratio against its Bitcoin holdings’ value. Conversion prices sit below the current share price, giving Strategy breathing room—for now.

The catch? If Bitcoin tanks and stays low, raising fresh capital gets tougher. The Kobeissi Letter notes this debt structure is key to understanding the risks.

Liquidation Fears: Real or Overblown?

Talk of a “forced liquidation” is buzzing. Could Strategy have to dump its Bitcoin? Not likely, says the Kobeissi Letter thread from February 2025.

Michael Saylor holds 46.8% of voting power. Any shareholder pushing for a drastic move—like liquidation—needs his nod. It won’t come easy.

The debt’s long maturity (2028) adds another shield. A “fundamental change” would be required to force sales, and Saylor can block that, per the analysis.

Bitcoin Price and MSTR Feel the Heat

Bitcoin price has swung between $88,000 and $97,000 as of February 25, 2025. That’s still above Strategy’s $62,473 entry point—but not by much if the slide deepens.

MSTR stock has lost over 55% since its peak, wiping out billions in value. Why? Investors fear that a prolonged Bitcoin slump could choke Strategy’s ability to issue new shares or debt. The company’s model—raise cash, buy Bitcoin, repeat—relies on market confidence.

Analysts are split. Some see Strategy’s Bitcoin bet as a masterstroke. If Bitcoin climbs back toward $100,000 or beyond, those 478,740 coins could soar in value.

Others point to the downside. A 50% drop—to $45,625—would put holdings underwater compared to debt and purchase costs. The Kobeissi Letter highlights this tension but notes no immediate collapse looms. Market sentiment, though, is souring fast.

What’s Next: Can Strategy Hold On?

Strategy has weathered crypto winters before. But this dip tests its limits. Bitcoin at $91,250 keeps the company in the green—barely.

The stock’s 55% plunge shows investors are jittery. Raising capital is the lifeline. If Bitcoin falls below $62,473 for long, that lifeline frays.

The Kobeissi Letter on X, dated February 2025, says the 2028 debt deadline buys time. Still, Strategy must prove its model works when markets bleed.