Strategy (MSTR) doubles down on Bitcoin with the purchase of an additional 1,142 BTC for $90 million, bringing their total holdings to 714,644 BTC. However, with Bitcoin trading near $69,651, Strategy’s position is now underwater, facing an estimated $4.5 billion unrealized loss. This shift has transformed Strategy into a leveraged Bitcoin proxy, prompting renewed scrutiny from investors. Critics raise concerns about the company’s reliance on equity issuance and debt to finance Bitcoin accumulation, especially with Bitcoin prices weakening. The stock’s market cap-to-net asset value ratio and increasing complexity of its capital structure further highlight the challenges Strategy faces.

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