Strategy has built a significant position in Bitcoin over the past five years. However, with the decline in Bitcoin’s price, Strategy’s valuation has plummeted in the last year. Investors are advised to buy Bitcoin directly instead of investing indirectly through Bitcoin treasury companies.

During the surge in Bitcoin’s price to $126,000 last year, demand for Bitcoin treasury companies like Strategy was high. Strategy, the largest corporate holder of Bitcoin, had a bright future. But with Bitcoin’s price down 45% in the past four months, investing in companies like Strategy is now questionable.

Strategy’s main goal is to accumulate Bitcoin cheaply and quickly. The company currently holds 713,502 bitcoins valued at about $50 billion. However, with the cost basis of its Bitcoin higher than the current price, Strategy reported a $12.4 billion loss for Q4 2025, causing its stock price to plummet.

Given the current market conditions, it’s not advisable to invest in Strategy. Buying Bitcoin directly and waiting for its price to recover may be a better option. With Strategy’s stock down 60% in the past year, it’s challenging for the company to sustain its operations through new Bitcoin purchases funded by issuing more stock.

The current market cap of Strategy is less than the value of its Bitcoin holdings, making it a less attractive investment. All Bitcoin treasury companies are facing challenges, and investors should consider holding off on buying stocks in these companies until the price of Bitcoin sees significant recovery. Strategy is a sell in 2026 until Bitcoin prices improve.

Read more at Nasdaq: Is the World’s Largest Corporate Holder of Bitcoin a Buy, Sell, or Hold in 2026?