As Digital Asset Treasury Companies Reach Fever Pitch, Strategy Stock Is Down 11%. Should You Buy the Dip?

The Digital Asset Treasury (DAT) reached the degree of fever in 2025. Dozens of new companies rushed to the brand rename themselves as a coding treasury, as many see their stocks rising by 1000 % or more in only days. For investors chasing speculative momentum, these newly promoted DAT companies have become the latest madness in Wall Street.

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But while the young players ride the noise, the Strategy (MSTR) – does not share the gathering. In fact, MSTR shares slid at 11 % over the past month, which led to poor performance of its peers. This comes despite the fact that the strategy is the original pioneer of the DAT model, with the huge BitCOIN (BTCUSD), which made it amazing stocks for investors looking for exposure to encrypted currency.

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Therefore, with the decrease in MSTR stock during the past month, is this just noise in a volatile sector – or a golden opportunity to buy a decline in the original Pioneers Bitcoin? Let’s discover!

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With the value of the market value of 94.7 billion dollars, the strategy, which was previously nominated, was recognized as a leading company in the Treasury. It works primarily as a digital asset company, focusing on obtaining and managing Bitcoin as the basic treasury reserve assets, thus providing investors with Bitcoin’s economic exposure. MSTR accumulates strategically with Bitcoin through stock financing revenues and debt financing, as it is placed as inflation and a car to estimate potential value. Besides Bitcoin Treasury, the strategy also provides solutions to the institutions of the AI.

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The shares of Bitcoin Treasury Company increased by 12 % on the basis of a year (YTD). However, MSTR stocks almost the same amount over the past month decreased by 11 %.

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The noise around the DAT model has increased to unprecedented levels this year, with the number of companies that rush to its adoption increased. The majority of more than 100 companies have been launched that buy encrypted currencies for their cabinet this year. These are usually small companies that have been renamed overnight – including the examples of Japanese nail salon, hemp, and a marketing agency.

Companies that follow the DAT model – encryption encryption while they are often done by doing little – provided investors a profitable gate in the boom of digital assets. Investors have adopted this, as a publicly traded cover provides exposure to encryption with a potential sophisticated crane, all within the familiar framework for fairness. However, if the company announces the axis of the DAT model, its shares tend to rise. Among the last main examples of OCTO, whose shares rose by more than 3000 % on Monday after the announcement of the WorldCOIN purchase plan and the appointment of Wall Street Dan Evez to the Board of Directors.

However, while the new companies continue to ride the speculative wave, the leading DAT companies such as the strategy have witnessed the decline in stock prices in recent weeks. Of course, the most obvious reason for this is Bitcoin’s decline in record levels since mid -August. However, diving deeper, new data indicates that the DAT model may start losing momentum under its weight. Cryptoquant reported that the Ministry of Digital Treasury companies bought only 14800 bitcoin in August, a sharp decrease from 66,000 in June. It is worth noting that the average purchase sizes decreased to 343 Bitcoin last month, a 86 % decrease from the peak of 2025. As a result, the growth of the total bitcoin’s possessions slowed dramatically, as the rate of treasury companies’ accumulation decreased from 163 % in March to only 8 % in August. The strategy announced last Monday that it bought $ 107 million in Bitcoin between September 2 and September 7.

JP Morgan analysts recently warned of investing in Crypto Treasury companies, pointing to the increasing doubts about the sustainability of the company model. They pointed out that these encrypted stocks face the danger of “invested and invested fatigue”, which makes them less attractive to possessing in the second half of 2025.

Meanwhile, the strategy of the S&P 500 ($ SPX) was excluded in the latest index balance, although the eligibility requirements are met. JP Morgan described this as “a major blow not only for Mstr but for other companies encryption cabinet.” The potential addition to the S&P 500 index can lead to approximately $ 2-3 billion of negative institutional flows, as a positive stimulus of the MSTR shares regardless of Bitcoin’s performance.

There were also signs that traditional financial institutions have increased the supervision of DAT companies. Nasdak, the home of many DAT companies, including the strategy, and according to what was reported, some of the distinguished symbol companies started to obtain the approval of the shareholders before issuing new shares to finance symbolic purchases. Participation shares model was a major means of these companies to raise capital without incurring debts.

However, I see that the impact of the above factors on the morale of investors is relatively limited, because the Bitcoin price movement was the true driving force behind the performance of MSTR shares. Of course, these factors can sometimes create a degree of chapter – as shown now with a little Bitcoin recovery this month while MSTR shares are traded sideways – but it is always important to remember what really drives the shares.

On July 31, the strategy issued its financial results for the second quarter of the fiscal year 2025. The company informed strong profits driven by the Bitcoin Treasury, with an increase in operating income by more than 7,000 % on an annual basis to 14 billion dollars in the second quarter. As a result, the company published a net income of $ 10 billion, or $ 32.6 per share on the basis of an amendment. The increase in profits was caused by unrealized gains on the digital assets of the strategy, as well as adopting a new accounting base that allows the company to report bitcoin holdings at a fair value.

At the time of the Q2 report, the strategy that maintains 628,791 bitcoin currencies in its wardrobe, which amounts to about 3 % of the total Bitcoin supply of 19.91 million BTC as of August 2025, according to Coinmetrics. It is worth noting that Bitcoin’s bodies of the strategy were obtained at a total cost of $ 46.1 billion, the cost basis is $ 73,277 per bitcoin.

It should be noted that the company has already achieved the goal of Bitcoin for 2025 by 25 %, as it reached the goal five months before the end of the year. As a result, the administration raised its instructions, now caused Bitcoin’s revenues by up to 30 % and expected $ 20 billion in Bitco Holdings this year. However, this expectation depends on a major assumption-that bitcoin will gather to $ 150,000 by the end of the year.

By moving to strategic software work, revenues of $ 115 million in the second quarter have achieved 2.7 % on an annual basis. The subscription sector in software works is still a bright point, as it grows by 69.5 % year on an annual basis to $ 40.8 million in the second quarter, with growth accelerated from the previous quarter.

Wall Street analysts keep up with bullish expectations on the MSTR, and is reflected in the category of consensus on “strong purchase”. Among the 13 analysts covering the shares, 10 “strong purchase”, one of them “moderate purchase”, another “comment”, and one “strong sale”. The average target price of the MSTR shares is $ 565.25, indicating huge potentials of 70.5 % of the closing price on Friday.

Collecting them together, strategy shares provide a great opportunity to gain Bitcoin’s exposure to a degree of leverage. And if you think the Bitcoin Rally will continue, the last withdrawal in MSTR is an attractive point of entering or increasing your position. However, an increasing number of investors began to question the DAT model, and find it difficult to justify the purchase of encryption through a company burdened with expenditures, risks and reduce stocks. If you share this offer, buy bitcoin directly on the exchange of encryption or get exposure through ETF is a great alternative.

On the date of publication, Oleksandr Pylypenko did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com