Strategy Stock: Buy, Sell, or Hold?
Key Points
The largest Bitcoin treasury company in the world just indicated it might be willing to sell some of its Bitcoin.
Strategy, formerly known as MicroStrategy, has accumulated over $61.8 billion in Bitcoin at an average price of $75,500.
As long as the price of Bitcoin remains stuck in a range around $75,500, Strategy can be safely avoided.
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Within the crypto investment world, a famous maxim has always been: "Never sell your Bitcoin (CRYPTO: BTC)." So what happens when the largest Bitcoin treasury company in the world suddenly says it's OK to sell your Bitcoin?
Strategy (NASDAQ: MSTR), formerly known as MicroStrategy, currently has $61.8 billion in Bitcoin on its balance sheet. But now, according to Strategy co-founder and executive chairman Michael Saylor, the company is willing to sell some of its Bitcoin to maximize shareholder value. And that, unfortunately, could make it too hot to handle for many investors.
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Are Bitcoin treasury companies in trouble?
As a Bitcoin treasury company, Strategy exists to do just one thing: buy and hoard as much Bitcoin as possible, as quickly as possible. And it has done so with much success. The company now holds 818,334 BTC, acquired at a total price of $61.81 billion. That works out to approximately $75,500 per coin.
Image source: Getty Images.
And that's the problem. If the price of Bitcoin is above $75,500, Strategy should be OK. But if the price of Bitcoin dips below $75,500, that's when the problems start. If you look at a chart for Bitcoin for 2026, you can see that Bitcoin has had a tough time maintaining the $75,500 price point.
The longer Bitcoin remains in a trading range around $75,000, the more stress and strain the Bitcoin treasury company model will face. In Q1 2026, Strategy reported an epic loss of $12.5 billion. That's due to writing down the value of its Bitcoin position.
That's why I think many Bitcoin treasury companies could be in trouble right now. The first sign appeared last year, when some began trading for less than the value of their Bitcoin holdings.
The second sign also came last year, when bigger Bitcoin treasury companies began to buy out smaller ones. The third sign came this year, when Bitcoin treasury companies and Bitcoin mining companies began to make noise about a pivot into artificial intelligence (AI) as a way of chasing higher returns.
And now comes the fourth sign. If Saylor is selling Bitcoin -- even a tiny smidgen of it -- that's bad news. It means the financial flywheel required to buy Bitcoin, week after week, month after month, is running out of energy. There's only so much equity and debt you can issue before you need to reach into your own pocket and come up with the cash. The only way to do that, unfortunately, is by selling your Bitcoin.
How to buy Bitcoin instead
If that's the case, I'm out on Strategy. Right now, the company's market cap is almost identical to the current value of its Bitcoin holdings. The premium is just too small to offset the additional risk investors are taking on.
It's far better just to buy Bitcoin and get 1:1 exposure to its future upside. You'll own the Bitcoin yourself, and you won't have to worry about the ongoing operations of a Bitcoin treasury company.
Should you buy stock in Strategy right now?
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Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
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