Strategy’s crypto treasury model involves selling new stock and issuing debt to raise funds for Bitcoin. While the stock may outperform if Bitcoin rallies, it could plummet if Bitcoin falls. Strategy (NASDAQ: MSTR) has prioritized cryptocurrency investments as its new growth driver, outperforming Bitcoin by 196% over five years. However, recent performance shows a different story, with Strategy stock losing more than half its value while Bitcoin trades flat.

The company’s crypto treasury model, which involves acquiring funds through new shares and debt to buy Bitcoin, drove huge gains for Strategy stock during Bitcoin’s bull run. However, with Bitcoin trading flat, Strategy’s financing moves have had a dilutive impact on shareholders, leading to reduced exposure. The stock’s valuation is closely tied to Bitcoin pricing trends, making it vulnerable to substantial sell-offs if Bitcoin underperforms in 2026.

Investors may want to think twice about buying Strategy stock, as the company’s slide could continue due to its financing strategy and Bitcoin’s performance. The Motley Fool Stock Advisor team recommends 10 other stocks that could produce significant returns in the coming years, highlighting the potential for market-crushing outperformance compared to the S&P 500.

It’s important to consider the risks associated with Strategy stock and the potential for further declines based on its crypto treasury model and Bitcoin’s performance. The Motley Fool’s Stock Advisor team suggests exploring other investment opportunities that could offer better returns in the long term.

Read more at Nasdaq: Will Strategy Stock Keep the Losing Streak Going in 2026?