Strategy Inc. Shares Face Mounting Headwinds

Strategy US5949724083

Strategy Inc., the company formerly known as MicroStrategy, is ending the year under significant pressure. Trading on the shortened Christmas Eve session concluded with shares at $158.71, placing the stock near its 52-week low. This represents a dramatic fall of approximately 65% from its July peak around $456 per share.

The primary drivers of this decline are a potent mix of concerns regarding the company's valuation, its substantial debt load, and its deep entanglement with Bitcoin's price. Market participants are increasingly questioning whether the premium—often measured as "mNAV"—applied to Strategy's Bitcoin holdings remains justified or is now turning negative.

This sharp correction coincides with a cooling period for cryptocurrency markets. Bitcoin itself is struggling to reclaim the $90,000 threshold, a dynamic that directly impacts the perception of Strategy Inc., whose balance sheet is dominated by Bitcoin investments.

Key Pressure Points:
* A share price decline of roughly 65% since the July high.
* The stock is trading near its 52-week low.
* The mNAV premium on Bitcoin holdings is under strain.
* Bitcoin's price remains below critical psychological levels.
* A shift toward a more defensive financial strategy focused on liquidity.

Leadership Signals a Pivot

In a television interview on December 15, CEO Phong Le outlined the company's outlook for 2026. He emphasized a stronger focus on balance sheet stabilization and expressed expectations for a more accommodative Federal Reserve monetary policy in the coming year, which could reignite demand for riskier assets.

Concurrently, the firm has raised fresh capital, boosting its cash reserves to over $2.2 billion. The current priority is clearly on servicing liabilities rather than pursuing an aggressive, immediate expansion of its Bitcoin treasury. This marks a noticeable departure from Strategy Inc.'s image as a perpetual large-scale buyer, a role it played prominently in the early months of 2025.

Technical and Performance Divergence

The fourth quarter of 2025 has seen a pronounced widening of the gap between the performance of Strategy Inc.'s stock and the broader cryptocurrency market. Despite its August rebranding to Strategy Inc., intended to underscore its dual identity as a Bitcoin treasury and analytics firm, the company's market value has eroded by more than 70% from its annual highs.

From a technical perspective, indicators suggest the stock is in oversold territory. The Relative Strength Index (RSI) resides in bearish ground. Chart analysts identify the $155 zone as a critical support level; a decisive break below this point could open the path toward $125. Conversely, a clear breakout above the psychologically important $200 mark would be viewed as a potential signal for a bottoming pattern and a subsequent reversal.

Final Trading Days of the Year

With U.S. markets closed for the holiday, attention now turns to the remaining trading sessions of the year. Market watchers will be focused on any announcements regarding the further use of "at-the-market" equity offerings, as well as updates on the company's Bitcoin holdings.

Furthermore, impending adjustments to index compositions and the broader trajectory of the digital asset sector as the year concludes will be crucial factors. These elements will determine whether Strategy Inc.'s share price can find stability around current lows or if the pressure from its contracting valuation premium will persist.