Shares of Michael Saylor’s Strategy have plunged nearly 21% following the recent Crypto Summit in the White House, as concerns about the economy and investor pullback from crypto-related stocks grow.
Between March 7 and March 10, Strategy’s stock fell from $302 to $239.27. Strategy also declined by over 17% on March 10. The broader Nasdaq Composite, which includes Strategy, also dropped by over 4% amid growing fears of an impending recession.
Despite the falling stock price, Strategy remains committed to Bitcoin. On March 10, the company announced plans to raise $21 billion for general corporate purposes, including Bitcoin purchases. Just weeks earlier, on Feb. 24, it bought 20,356 BTC for nearly $2 billion.
The worst weekly Bitcoin price decline of March 10 did not affect Strategy’s BTC investments as they remain profitable by 18.9% at an average cost of $66,423 per coin.
The bold Bitcoin investment approach of Strategy generates significant criticism among industry observers. People view this move as brilliant because they believe Bitcoin will continue to grow in value over time. Some critics view the firm’s actions as dangerous and compare it to a Ponzi scheme.
In November, investor Hedgex.eth warned that Saylor’s “endless leverage” could harm Bitcoin. Despite the controversy, Strategy has inspired others. Japan’s Metaplanet saw a staggering 4,800% stock surge in 12 months after adopting a Bitcoin treasury strategy.
Will Strategy’s bold Bitcoin play pay off, or is it a ticking time bomb? Investors remain divided.
Also Read: Strategy Buys 20,356 BTC, Total Holdings Near 500K
