Strategy Is On Track for Its 11th Down Month in a Year
Strategy is nearly certain to post another losing month as bitcoin's persistent slide drags on the company's performance.
If you've been watching Strategy — the company formerly known as MicroStrategy and perhaps the most bitcoin-obsessed firm on Wall Street — things haven't exactly been going great lately. The company is staring down what would be its 11th losing month out of the last 12, a streak that pretty much tells you everything you need to know about what happens when you tie your corporate fortunes tightly to a single volatile asset.
Bitcoin's continued weakness is the main culprit here. Strategy's whole identity is built around holding massive amounts of bitcoin on its balance sheet, a bold bet that has paid off spectacularly during crypto bull runs but can really sting when the market turns the other direction. When bitcoin dips, Strategy's stock tends to follow — and right now, that correlation is working against shareholders in a big way.
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For everyday investors, this is a useful reminder of concentration risk. Putting all your eggs — or in Strategy's case, essentially your entire corporate strategy — into one basket means the highs can be thrilling but the losing streaks can be long and painful. Eleven down months in a year is the kind of run that tests even the most committed crypto believers.
Whether this is a buying opportunity or a warning sign depends almost entirely on your outlook for bitcoin itself. If you think crypto is due for a rebound, Strategy could look attractive at beaten-down levels. If you're less convinced, the company's heavy exposure means there's no real cushion if prices keep sliding. Either way, it's hard to call this anything other than a rough stretch for one of the market's most closely watched bitcoin proxies.
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