Strategy’s recent Bitcoin buys draw scrutiny as BTC slides 42% from peak

[chainsniff]

Strategy’s aggressive Bitcoin buying is back under scrutiny as BTC trades roughly 42% below its October 2025 peak of $126,000. In late January and early February, the company added Bitcoin at prices near $88,000, $90,000, and even above $95,000 — purchases that were quickly followed by a sharp market sell-off.

The pattern echoes past cycles, where Strategy ramped up buying during rallies using equity issuance and zero-coupon convertible debt, only to face steep short-term drawdowns. Critics point to similar behavior in 2021, when Bitcoin’s collapse led to billions in unrealized losses and an 80% plunge in Strategy’s stock.

With Bitcoin under pressure and earnings approaching, analysts warn that prolonged weakness could revive concerns about leverage, dilution, and the durability of Strategy’s Bitcoin treasury model.

[madtrader]

paper losses approaching $1b just from a few thousand dollars in price movement shows how fragile this leveraged treasury model really is.