Bitcoin Price Crash: Saylor’s Strategy is in Big Trouble

The Bitcoin price crash is showing no signs of slowing down. A temporary surge to $92,763 — in part helped by Nvidia’s bullish earnings — quickly reversed itself, with the world’s biggest cryptocurrency now in danger of losing $80,000.

BTC is now 33% off all-time highs set less than two months ago. Traders with long positions are feeling especially bruised right now, not to mention millions of investors with sats in their wallets.

But there’s one company in particular that’s painfully exposed to a Bitcoin price crash: Michael Saylor’s Strategy. It now has almost 650,000 BTC in its warchest — that’s equivalent to 3% of total supply — after a debt-fueled spending binge.

Given the business intelligence firm started purchasing Bitcoin back in August 2020, when prices were a mere $11,000, the typical cost per coin hasn’t been too high. However, that’s been starting to change.

The latest figures show that Strategy has paid an average of $74,433 per BTC, and this means it’s now perilously close to being in the red. If the Bitcoin price crash continues, a drop of just 11% from current levels will result in paper losses.

Of course, this has happened before. Strategy weathered the last bear market without selling a single coin. However, its holdings were miniscule then compared with what they are like now.

In a surreal turn of events, Strategy’s market capitalization is now substantially less than the value of the Bitcoin it owns — and Wall Street investors have been dumping the stock in their droves.

Let’s put this into context. The Bitcoin price crash means BTC is now 12% lower than it was at the start of 2025. By comparison, MSTR shares have plunged by 56% in the past six months alone — with 41% of those losses in the past month.

Given Strategy’s pivot to a treasury company, its stock lives and dies by how Bitcoin performs, and it usually experiences outsized gains or losses based on market movements. This could end up having severe consequences in the months ahead.

As JPMorgan recently noted, Strategy’s astronomical gains from 2024 to mid-2025 — running from $63 to $542.99 — meant that the stock was included in major indices such as the tech-heavy Nasdaq 100 and MSCI World. This meant MSTR shares were snapped up by asset managers who provide ETFs tracking them. Millions of everyday investors saving for retirement or a rainy day have indirect exposure to this stock.

However, there is now a real risk that Strategy could now be delisted from these self-same indices, meaning we would see selloffs instead. Analysts believe outflows could be near $3 billion if the company is booted out of MSCI World and USA — potentially surging to $9 billion if others like the Nasdaq 100 follow suit.

The headaches don’t stop here. Another iceberg on the horizon relates to 2028, when convertible bonds worth $5 billion will become redeemable. S&P sounded the alarm last month and slapped a junk-grade rating of B-minus on Strategy, warning:

“We view Strategy’s high bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low U.S. dollar liquidity as weaknesses.”

Michael Saylor’s mantra has long been “never sell your Bitcoin,” but the company might not have a choice if its financial obligations start to build up. Here’s the problem: any sale, no matter how small it might be, would spark mass panic in the markets — and make the current Bitcoin price crash look tame by comparison. Given the total revenue from the business intelligence side was just $116.1 million in the third quarter of 2025, it hasn’t got enough income flowing in from elsewhere to avoid this.

Analyst Shanaka Anslem Perera has argued that all of this drama could spell the end of Strategy being used by investors who want indirect exposure to Bitcoin — as ETFs tracking this cryptocurrency’s spot price will become a more popular alternative. On X, he wrote:

“The reflexivity loop that powered everything: raise money from stocks, buy Bitcoin, stock price goes up, raise more money, buy more Bitcoin. That cycle is dead.”

Strategy’s huge Bitcoin holdings should alarm investors — and, if Saylor’s once-visionary experiment comes to a sticky end, this could deal a fatal blow to the narrative of companies and nation-states holding BTC as a reserve asset.

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