Despite a considerable decline in stock value this year, Strategy’s firm commitment to Bitcoin remains solid, with their investments continuing to yield profitable outcomes. Currently down by nearly 60% over the past year, Strategy stocks have seen their prices nosedive from approximately $300 to about $170 recently. While some critics view this drop as a sign of failure in their Bitcoin model, the reality is that they still enjoy significant profits from their Bitcoin holdings.

According to recent data, the average purchase price for their Bitcoin is around $74,430, while Bitcoin’s current trading value is about $86,000, indicating a robust nearly 16% return on their investments. Moreover, over a five-year period, Strategy shares have increased more than 500%, far exceeding gains of 130% for Apple and 120% for Microsoft.

Investors are using Strategy as a hedge against cryptocurrency investments

The slump in stock prices is believed to be more reflective of investor strategies than the fundamentals of Bitcoin. Tom Lee from BitMine pointed out that many investors utilize Strategy’s stock options to hedge against their Bitcoin investments, thereby placing indirect pressure on Strategy itself.

Kyle Rodda noted that a sharp drop in Bitcoin prices could pressure Strategy into selling their Bitcoin, potentially adding further strain on both stocks and cryptocurrency values. Regardless, Michael Saylor recently expressed his determination on social media, asserting he will “not back down.”

In a significant move, Strategy recently purchased 8,178 BTC, amassing a total of 649,870 BTC valued at nearly $56 billion. The market dynamics for digital asset treasuries are also under scrutiny, with indications of declining liquidity across various sectors contributing to the overall market slump.