Strategy’s stock suffers heavy dilution pressure, analysts
The post Strategy’s stock suffers heavy dilution pressure, analysts appeared on BitcoinEthereumNews.com.
Analysts have highlighted significant dilution concerns for Michael Saylor’s Strategy, stemming from its aggressive funding strategies to acquire more cryptocurrency. While its playbook has created many copycats, Strategy has been under a lot of scrutiny over its long-term positioning and financial health. Why’s the MSTR stock down? According to recent CryptoQuant reports, analysts believe Strategy selling $700M in stock last week has triggered dilution and continued downside pressure. The stock is currently down 70% from its all-time high (ATH) and is reportedly still bleeding as supply hits the market. The shares are down about 55% over the past 12 months and 36% year-to-date, compared with a 3.6% drop in Bitcoin this year. Strategy’s market value has also fallen to around $45 billion while its BTC holdings are worth around $60 billion. “Balance sheet leverage comes at a cost,” one analyst wrote. Aside from the sell pressure on its stock, another factor affecting Strategy’s stock is the company’s use of at-the-market (ATM) equity offerings and convertible debt to finance its Bitcoin purchases. The model has seen the company rake in over $900 million from ATM sales to buy additional Bitcoins. Basic shares outstanding are up approximately 20% year-to-date as of December 2025, and analysts continue to warn that tighter capital markets could exacerbate dilution if the company continues issuing shares or debt. The recent $1 billion Bitcoin buy, funded partially via equity and debt, has also contributed to the stock’s underperformance, as there were brief periods when the company’s market value fell below the value of the company’s Bitcoin holdings, which highlights investor fears over leverage and future share issuances. Will MSCI remove Strategy and co? Strategy started out as a software company, MicroStrategy, but pivoted to Bitcoin investing in 2020. It was included last December under the Nasdaq’s technology sub-category,…
Filed under: News - @ December 26, 2025 8:20 pm