Strategy (formerly MicroStrategy) – the largest institutional Bitcoin investor – is facing a $3.86 billion unrealized loss recently due to the decline in the value of Bitcoin. Under the leadership of Michael Saylor, the company has implemented an aggressive buy-and-hold Bitcoin strategy, a controversial strategy that has been both praised and criticized.

However, that approach is being tested more than ever as Bitcoin has fallen more than 13% in 2025. Strategy has spent about $5.3 billion to buy more Bitcoin so far this year, but the value of the asset is falling. Prominent Bitcoin critic Peter Schiff has emphasized that without Saylor’s purchases, Bitcoin could have fallen even further. The concern is that if Saylor is forced to sell, the market impact could be huge.

Bitcoin Plunges, Strategy’s Strategy Faces Challenge

Bitcoin has now fallen below the $95,000-$105,000 price range, the range where Strategy recently bought. If the downtrend continues, the firm could face difficult financial decisions. While many investors believe Bitcoin will recover as it has in previous cycles, a number of technical indicators and macroeconomic factors suggest that Bitcoin could continue to fall to $50,000-$60,000. If that happens, Strategy’s Bitcoin holdings would be worth less than the average cost the firm spent to buy them.

Despite this, the firm remains committed to its Bitcoin strategy, at least for now. However, if the market continues to decline, whether Strategy will maintain this approach remains a big question mark. A change in strategy could lead to further volatility in the cryptocurrency market.

Should You Invest in MSTR Stock Now?

Before deciding to invest $2,000 in MSTR stock, investors need to consider many factors. Investing.com has developed ProPicks AI, an artificial intelligence-based tool to identify potential stocks that could generate big returns in the future. With over 150,000 paying members, ProPicks has helped many investors find attractive investment opportunities.

Is MSTR one of the potential stocks? This depends on Bitcoin's ability to recover and how Strategy will handle its huge assets. If Bitcoin can regain growth momentum, MSTR stock could bounce strongly. On the contrary, if the downtrend continues, Strategy's losses may become larger, negatively affecting the stock price.

Investors need to consider the risks and have appropriate strategies before entering the market, especially in the current volatile context.