Shares of Strategy fall 12%, wiping out roughly $5 billion in market capitalization. The drop extends a prolonged downturn, leaving the stock about 79% below its all-time high as investor risk appetite deteriorates alongside crypto markets.
The company’s Bitcoin-heavy balance sheet remains a key drag. Bitcoin holdings now carry an unrealized loss of approximately $6.2 billion, reflecting the sharp correction in digital assets. The exposure amplifies volatility in Strategy’s equity, which often trades as a leveraged proxy for Bitcoin.
Across the broader crypto market, leverage unwinds accelerate. Over the past 24 hours, long positions totaling about $1.21 billion are liquidated, underscoring fragile sentiment and heightened downside risk during rapid market moves.