Strategy Shares Tumble for Six Straight Months—Even With Bitcoin in Their Portfolio

When a 'hedge' fails to hedge.

Six-Month Slide Defies Crypto Logic

You'd think holding Bitcoin would act as a counterweight—a digital life raft in choppy markets. Not for these strategy shares. They've been sinking for half a year straight. The numbers don't lie: a relentless, six-month decline stares back from the chart, utterly indifferent to the crypto allocation meant to prop things up.

The Bitcoin Bet That Didn't Pay Off

It's the portfolio puzzle that's frustrating allocators everywhere. You add the premier crypto asset for uncorrelated returns, for its inflation-resistant narrative, for sheer momentum. And then... nothing. Or worse, the decline continues unabated. It raises uncomfortable questions about the strategy's core engine—if Bitcoin can't stop the bleed, what's actually driving the losses?

A Cynical Take on Modern Portfolio Theory

Here's the finance jab: sometimes, layering a volatile asset onto a struggling strategy just gives you two ways to lose money instead of one. Diversification only works when the other assets aren't all reading from the same grim script.

The real story isn't Bitcoin's failure—it's the strategy's inability to harness its potential. In the end, a tool is only as good as the hand that wields it.

Historic Series of Losses in Strategy Shares

Strategy shares experienced consecutive declines for six months from July to December 2025. Sharp drops of 16.78% in August, 16.36% in October, 34.26% in November, and 14.24% in December put pressure on the stock towards the year-end. At the closing on December 31, the company shares stood at $151.95, marking a 2.35% daily decline.

Compared with past periods, this scenario presents a striking divergence. In the bear market of 2022, sharp declines were balanced by rises exceeding 40% within months. However, the absence of a similar relief rally in the second half of 2025 indicated a more permanent valuation change in investor perception, with a total loss of 59.30% over six months and an annual decline of 49.35%.

Divergence from Bitcoin and Market Comparison

The weakness in share performance has created a notable divergence from Bitcoin’s price movements. According to CryptoAppsy data, bitcoin was trading at $88,798 at the time of writing. Over the past month, Bitcoin lost 5.06%, 27.36% over three months, and 9.65% over the year, incurring more limited losses compared to Strategy shares during the same periods.

This divergence occurred despite the company continuing its Bitcoin accumulation. On December 29, Chairman Michael Saylor announced the completion of a purchase of 1,229 BTC for approximately $108.8 million. By the end of December, the company’s total Bitcoin holdings reached 672,497 BTC, valued at around $50.44 billion. Despite this, Strategy shares lagged behind the technology-heavy Nasdaq 100 index, which ROSE 20.17% throughout 2025.