Strategy Stock Pressured as Bitcoin Drop Fuels Concern: A Market Wake-Up Call?

Bitcoin's slide sends shockwaves through strategy stocks. The correlation isn't just theoretical—it's a gut punch to portfolios banking on crypto's endless ascent.

The Domino Effect

When Bitcoin stumbles, the tremors reach far beyond crypto exchanges. Publicly traded companies with heavy digital asset exposure or blockchain-focused strategies feel the heat immediately. Investor sentiment, that fickle beast, turns from greed to caution overnight, pressuring valuations across the board.

Liquidity Lockdown

A falling tide lowers all boats, but in crypto markets, it can drain the marina. The drop triggers margin calls, forces liquidations, and squeezes available capital. Strategy stocks often rely on that very liquidity and bullish momentum—both of which vanish when Bitcoin coughs.

Not a Death Knell, But a Reality Check

This isn't about declaring the end of crypto. It's about highlighting a fundamental vulnerability. For all the talk of decentralization, traditional market forces—fear, leverage, and herd mentality—still reign supreme. It's the oldest story in finance, dressed in a digital hoodie.

The bottom line? Volatility is the price of admission. Today's pressure is a stark reminder that in the hunt for alpha, sometimes the market just takes your wallet and calls it a strategy.

Key highlights

• Strategy’s 650K BTC stash fuels fears of forced selling as mNAV edges lower.
• CryptoQuant’s Ki Young Ju says any new BTC “bear” may be shallower.
• MSCI’s review of MicroStrategy underscores index-removal risk for BTC-heavy firms.

Strategy Inc., the largest corporate Bitcoin (BTC) holder, has re-entered the spotlight after a sharp BTC downturn renewed debate over whether the firm may be forced to sell part of its 650,000 BTC stack.

The company is a bellwether for U.S. corporate bitcoin treasuries. The latest turbulence comes as BTC-heavy firms face sharper volatility and regulatory scrutiny. MicroStrategy’s ongoing MSCI review, which could trigger major passive outflows, has added pressure to the broader corporate-BTC narrative.

Public commentary urges calm

CryptoQuant CEO Ki Young Ju posted an analysis on X, arguing that Strategy’s continued holding strategy materially reduces the probability of another DEEP drawdown like 2022’s 65% peak-to-trough decline.

If Strategy holds its 650K BTC this cycle (or sells only a little), we WOULD not see another -65% drawdown like in 2022.

We are about -25% from ATH now, and even if a bear cycle comes, the downside would likely be smaller and look more like a broad sideways range.

Long-term… pic.twitter.com/71HBg0UDs7

Ju emphasized that “long-term holders should avoid panic selling,” highlighting improved liquidity channels and broader institutional demand. His post included a long-term drawdown chart showing Bitcoin’s retracements tend to moderate over time as structural buyers grow.

Bitcoin drop raises selling concerns

Monday’s BTC slide to roughly $86,000 rattled Strategy’s shareholders, sending the stock down more than 5%. The concern centers on the company’s mNAV, which sat NEAR 1.2 earlier this week. If mNAV falls below 1, Strategy could be compelled to sell Bitcoin to maintain dividend distributions.

Strategy CEO Phong Le told investors that selling would be a “last resort,” stressing that the firm prefers to hold long-term. The company carries an average BTC purchase price of $74,436, meaning recent prices are still above cost basis but uncomfortably close to dividend-policy constraints.

MSCI index-removal risk

Pressure on Bitcoin-treasury firms is rising globally. MicroStrategy confirmed it is in talks with MSCI as the index provider evaluates whether to exclude the company from major benchmarks. Analysts estimate possible passive outflows of $2.8B–$8.8B, a decision due January 15, 2026.

A removal could reshape how equity-market allocators treat BTC-heavy corporations, raising questions about whether Strategy may eventually face similar scrutiny.

What comes next

For now, Bitcoin has rebounded above $93,000, easing immediate sell-off fears. Analysts say Strategy’s ability to maintain holdings throughout this cycle will play a key role in stabilizing broader market sentiment.

Still, with index reviews looming, mNAV pressure building, and volatility back, crypto-treasury firms head into 2026 in a tougher landscape. Investors will be watching whether Strategy can uphold its no-sell stance and whether Bitcoin’s next MOVE supports it.

Also read: Bitcoin Climbs Back Above $90K Amid Regulatory Optimism