The MicroStrategy Myth Has Collapsed! US Stock Imitators See Their Share Prices Halved, But Saylor Still Hints at Further Accumulation

MicroStrategy founder and executive chairman Michael Saylor released Bitcoin Tracker information, hinting at another increase in holdings. However, digital asset management companies rushing to emulate MicroStrategy have suffered heavy stock price losses. Year-to-date, the median stock price of these companies has fallen 43%, while the broader market has climbed. In the first half of this year, more than 100 publicly listed companies transformed into cryptocurrency holding vehicles, borrowing billions of dollars to purchase tokens, but their debt obligations have exposed structural flaws.

Saylor Releases Tracker Information Signaling New Holdings Data

(Source: Saylor Tracker)

On December 7, Michael Saylor once again posted Bitcoin Tracker information on the X platform, a routine action that holds significant meaning in the MicroStrategy investor community. Historically, Saylor typically discloses MicroStrategy’s latest Bitcoin accumulation data the day after posting Tracker information. This preview-style release has become a focal point for market attention, as changes in MicroStrategy’s Bitcoin holdings often have a notable impact on market sentiment.

Currently, MicroStrategy holds about 650,000 Bitcoins, worth over $56 billion, which is more than 3% of Bitcoin’s maximum supply. This massive position makes MicroStrategy the world’s largest corporate holder of Bitcoin, and its buy and sell decisions carry undeniable market influence. However, it’s worth noting that MicroStrategy’s monthly Bitcoin accumulation has plummeted from a peak of 134,000 BTC in 2024 to just 9,100 BTC in November, and only 135 BTC have been added so far in December.

This sharp slowdown in accumulation has sparked speculation about a shift in MicroStrategy’s strategy. Is financial pressure preventing continued aggressive purchasing, or has a changing market environment made management hesitant about such an approach? Saylor’s upcoming data release may provide answers. If the new holdings data remains at low levels, it could further fuel skepticism about the sustainability of MicroStrategy’s model.

Stock Prices of 100 Copycat Companies Plunge 43%

(Source: Bloomberg)

In the first half of 2025, more than 100 publicly listed companies pivoted to become cryptocurrency holding vehicles, borrowing billions of dollars to buy digital tokens. Their stock prices initially soared above the value of the underlying assets they purchased. This strategy seemed unstoppable—until market realities delivered a harsh correction. According to Bloomberg data tracking 138 digital asset bond issuers in the US and Canada, the median stock price has dropped 43% year-to-date, far worse than Bitcoin’s 7% decline.

By contrast, the S&P 500 has risen 6%, and the Nasdaq is up 10%. This stark difference shows that companies copying MicroStrategy’s model have not benefited from crypto’s appreciation as expected, and have instead been hit hard by structural issues. Since MicroStrategy began buying Bitcoin in August 2020, its share price has surged over 1,200%, but it has fallen 60% from its July peak and is still down 38% this year.

SharpLink Gaming exemplifies this frenzy. The company abandoned its traditional gaming business model, appointed an Ethereum co-founder as chairman, and announced large-scale token purchases. Its stock surged 2,600% in days, then crashed 86% from its peak, leaving its total market cap below the value of its Ethereum holdings—just 0.9 times its crypto reserves. Such extreme volatility shows that market confidence in this business model is rapidly unraveling.

Alt5 Sigma, backed by two of Donald Trump’s sons, planned to buy over $1 billion worth of WLFI tokens from World Liberty Financial, but its stock has fallen more than 85% from its June peak. Even high-profile investor endorsements have failed to stop these companies’ share price collapses. B. Riley Securities analyst Fedor Shabalin told Bloomberg, “Investors, after looking more closely, found that holding these assets doesn’t generate much return. They’d rather keep the money in cash.”

Debt Obligations Expose Structural Flaws of the MicroStrategy Model

The core problem facing these companies is how they fund their cryptocurrency purchases. MicroStrategy and its imitators have issued large amounts of convertible bonds and preferred stock, raising over $45 billion industry-wide to buy digital tokens that generate no cash flow. These debt instruments carry hefty interest and dividend obligations, which crypto holdings cannot repay, creating a structural mismatch between regularly due liabilities and zero-income assets.

MicroStrategy faces $750 million to $800 million in fixed annual debt, linked to these bonds and preferred shares. For a software company, this is a massive financial burden, and the Bitcoin holdings themselves produce no cash flow to service these obligations. This means MicroStrategy must rely on issuing stock or selling Bitcoin to meet its debt commitments, contradicting Saylor’s longstanding promise to “never sell Bitcoin.”

Three Structural Flaws of the MicroStrategy Model

Cash Flow Mismatch: Massive debt requires regular interest and dividend payments, but Bitcoin holdings generate no cash flow.

Leverage Risk: Using borrowed funds to buy volatile assets creates margin call pressure during market downturns.

Valuation Paradox: When share prices fall below net Bitcoin asset value, the company can’t raise funds by issuing stock and can only sell Bitcoin.

Companies that avoided Bitcoin in favor of smaller, more volatile cryptocurrencies suffered the worst losses. Small-cap cryptocurrencies lack Bitcoin’s liquidity and market depth, making them even more prone to wild swings under pressure, further magnifying these companies’ financial risks. MicroStrategy has tried to address funding issues by selling stock to raise $1.44 billion in cash reserves, enough to cover 21 months of dividends, but this approach itself reveals the unsustainability of the model.

Saylor’s Historic Shift: Admitting Possible Bitcoin Sales

Now, the industry is facing a critical moment. MicroStrategy CEO Phong Le has admitted that, if necessary, the company will sell Bitcoin to pay dividends, especially if the company’s market value falls below its crypto holdings. Given Saylor’s repeated insistence that MicroStrategy would never sell Bitcoin—he once joked in February, “If I have to, I’ll sell a kidney, but I’ll keep the Bitcoin”—these statements have caused a stir in the digital asset treasury sector.

At Binance Blockchain Week in December, Saylor outlined the revised approach: “When our stock trades above Bitcoin’s net asset value, we sell stock,” but “when the stock trades below Bitcoin’s value, we sell Bitcoin derivatives or directly sell Bitcoin.” This reversal marks a fundamental shift in MicroStrategy’s strategy—from “hold forever” to “sell as needed.”

This reversal has raised concerns about a downward spiral: forced crypto sales would push token prices lower, further depressing the valuations of treasury companies and potentially triggering more selling. Market participants worry that leveraged traders investing in these companies with borrowed funds could face margin calls, leading to broader market sell-offs. If MicroStrategy starts selling Bitcoin, other imitators could be forced to follow, creating a negative feedback loop.

MicroStrategy has set aside $1.4 billion in reserve funds to pay near-term dividends, but this is only a temporary solution. In the long run, if Bitcoin prices fail to keep rising or MicroStrategy cannot issue stock at a high premium, selling Bitcoin may become inevitable. For a company that has positioned itself as a “Bitcoin treasury,” this would undoubtedly be a major strategic setback.