# Strategy stock vs Bitcoin – why buying the crypto may be smarter

**Published:** 2026-08-02T07:10:29.913Z  
**Topic:** Bitcoin  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/0b7dc33a-f3a8-47ca-a0f9-ee5c9445d48d

Strategy (MSTR) shares down 80% and Bitcoin off 29% YTD; company paused Bitcoin buys, sold reserves, and faces $6.7 bn debt. See why the crypto itself could be

Strategy shares slid 80% from their all‑time high as the company halted Bitcoin purchases for five weeks and sold part of its reserve, while Bitcoin itself fell 29% YTD — highlighting the growing gap between the stock and the underlying asset [1][2].

| At a glance | |
|---|---|
| Stock price | Down 80% from peak |
| 24h % move | Not specified in sources |
| Bitcoin price | ~ $63,000, 49% below record |
| Catalyst | Pause in Bitcoin buys, multiple Bitcoin sales, $6.7 bn debt burden |

## Pause in Bitcoin buying and recent sales  
MSTR’s “flywheel” model—issuing equity to buy Bitcoin—relies on the stock trading at a premium to net asset value (NAV). The stock now trades at about 0.60 × NAV, undermining that strategy [2]. After a purchase of 520 BTC at an average $67,068 during the week of June 15‑21, the firm went five weeks without any new Bitcoin acquisition [2]. In late May, June, and early July it sold Bitcoin to fund dividend payments on its perpetual preferred “Stretch” shares, which carry a 12% dividend and require $1.76 bn in annual cash [2].

## Financial strain and cash cushion  
MSTR carries $6.7 bn of debt and incurs $1.79 bn in annual costs for dividends and interest, leaving the company dependent on Bitcoin sales or further dilution to meet obligations [1]. Its cash reserves of $3.75 bn can cover just over two years of these expenses, a buffer that would be tested if Bitcoin fell sharply [3]. CEO Phong Le argues the firm could withstand an 86% drop in Bitcoin—from $63 k to $9‑10 k—before the balance sheet feels real pressure, thanks to its dollar reserves [3].

## Bitcoin versus the stock  
Both assets posted losses this year, but Bitcoin’s 29% YTD decline is less severe than MSTR’s 38% drop [1]. Moreover, Bitcoin’s price resilience—still trading at $63 k despite a 49% fall from its record—means investors can endure a prolonged correction better than shareholders of a company whose revenue is tied to a volatile asset and a complex debt structure [1][3].

## What to watch
- **Bitcoin price**: $10,000 level could test MSTR’s cash‑cover claim [3].
- **Debt maturity**: Any upcoming principal payments may force additional Bitcoin sales.
- **Equity issuance**: New share offerings could further dilute investors if the stock stays below NAV.

The divergence between MSTR’s financial pressures and Bitcoin’s standalone market dynamics suggests the stock may remain a high‑risk proxy for crypto exposure, while the cryptocurrency itself offers a more direct, less leveraged path for investors.

## Sources
1. The Motley Fool · via AOL — [Don't Buy Strategy Stock When You Can Just Buy Bitcoin](https://www.aol.com/articles/dont-buy-strategy-stock-just-070500827.html)
2. The Motley Fool · via AOL — [Michael Saylor Has Paused Strategy's Regular Bitcoin Buys. What Does That Mean...](https://www.aol.com/articles/michael-saylor-paused-strategys-regular-175100808.html)
3. The Motley Fool · via AOL — [Strategy CEO Phong Le Says Bitcoin Can Drop Below $10,000 Without Putting Stress...](https://www.aol.com/articles/strategy-ceo-phong-le-says-121600047.html)

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Cite as: TrendWatcher, "Strategy stock vs Bitcoin – why buying the crypto may be smarter", https://www.trendwatcher.in/article/0b7dc33a-f3a8-47ca-a0f9-ee5c9445d48d