Will Strategy Stock Keep the Losing Streak Going in 2026?

• Strategy's crypto treasury exemplary involves selling caller banal and issuing indebtedness successful bid to rise funds to bargain much Bitcoin.

• The banal volition apt outperform Bitcoin if the token rallies, but shares could plummet if Bitcoin falls oregon trades flat.

• 10 stocks we similar amended than Strategy ›

Strategy (NASDAQ: MSTR) (formerly known arsenic MicroStrategy) was a pioneer of the Bitcoin (CRYPTO: BTC) treasury concern model. As its erstwhile bundle businesses experienced declining performance, implicit the past 5 years, the institution has alternatively prioritized cryptocurrency investments arsenic its caller maturation driver.

Through this approach, Strategy has been capable to outperform Bitcoin implicit the past 5 years -- with gains of 196% crossed the stretch, compared to Bitcoin's gains of 169%. However, Strategy's show implicit the past twelvemonth has been a precise antithetic story.

As of this writing, Bitcoin is trading astir level implicit the past year. Meanwhile, Strategy banal has mislaid much than fractional of its value. Is the company's descent poised to proceed successful 2026?

To recognize what mightiness travel adjacent for Strategy stock, it's important to recognize however the company's crypto treasury exemplary works -- and wherefore it was antecedently capable to thrust immense gains for the stock.

By issuing caller shares and taking connected debt, the institution acquires funds that it past uses to bargain Bitcoin. Thanks to the beardown bull tally for Bitcoin implicit the past 5 years, this helped Strategy banal station monolithic gains.

Using secondary banal offerings and borrowed wealth to money Bitcoin purchases works good erstwhile the cryptocurrency's token terms is connected a accelerated upswing. By creating and selling caller shares to money its purchases, Strategy is selling diluted stakes successful the company, often astatine valuations that enactment a premium connected the stock. With astir of the company's marketplace capitalization tied to the worth of its Bitcoin holdings and the anticipation that its crypto treasury attack tin proceed to thrust growth, Strategy's valuation is intimately tied to Bitcoin pricing trends.

Because Bitcoin has traded astir level implicit the past year, Strategy's financing moves person had a dilutive interaction connected shareholders and added indebtedness without the corresponding banal gains that antecedently made its capital-raising tradeoffs a nonissue for shareholders. Because Strategy banal comes with outsized downside hazard erstwhile Bitcoin underperforms, galore shareholders person reduced their vulnerability to the banal implicit the past year.

If Bitcoin moves mostly sideways, oregon adjacent posts humble gains successful 2026, Strategy banal is apt to get deed with different important circular of sell-offs. But if the market-leading cryptocurrency slides substantially, the banal could clang good beneath existent levels. Alternatively, Strategy banal could dramatically outperform Bitcoin if the token enjoys a beardown rally.