Strategy Stock Is Bleeding, But Saylor ‘won’t Back Down’ From...

Despite a steep drop in its share price, Strategy’s Bitcoin stack is in the green and it continues to outperform top tech equities over time.

Update Nov. 24, 1:20 pm UTC: This article has been updated to add comments from Kyle Rodda, senior market analyst at Capital.com.

Bitcoin investor Strategy is facing a rough stretch this year, prompting speculation that its high-conviction Bitcoin play is coming undone. A look beyond the one-year chart tells a different story.

Google Finance data shows that Strategy (MSTR) stock is down almost 60% over the last year, and has declined by over 40% year-to-date (YTD). The stock traded near $300 in October, before dropping to about $170 at the time of writing.

While some interpret this as its Bitcoin model being “exposed,” Strategy is still sitting on double-digit profits on its Bitcoin purchases, and its long-term equity performance continues to outpace major tech stocks.

According to BitcoinTreasuries.NET data, Strategy acquired its Bitcoin (BTC) at an average price of $74,430. With Bitcoin trading at around $86,000, Strategy is still up nearly 16% on its BTC investments.

Over a five-year window, Strategy shares are up by more than 500%, according to Google Finance data. By comparison, Apple has recorded a 130% gain, while Microsoft has seen a 120% increase in the same time frame.

Even on a shorter two-year horizon, Strategy stock is up by 226%, surpassing Apple’s 43% gains and Microsoft’s 25% increase in the same time period.

The slump might have less to do with Bitcoin’s fundamentals and more to do with how the biggest investors hedge their crypto exposure.

In a recent CNBC interview, BitMine chairman Tom Lee explained that Strategy has become the easiest way to hedge Bitcoin.

Source: CoinTelegraph