Home Finance SKN | Strategy Trading Volume Surges to Highest in a Year as Shares Drop on Dollar Reserve, Profit Shift
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SKN | Strategy Trading Volume Surges to Highest in a Year as Shares Drop on Dollar Reserve, Profit Shift

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Strategy Stock Sees Heavy Sell-Off and Record Trading Activity

Strategy (MSTR) shares saw their busiest trading day in nearly a year on Monday as investors reacted to the company’s announcement of a new U.S. dollar reserve and a significant adjustment to its full-year profit outlook.

More than 42.9 million shares exchanged hands—marking the highest trading volume since December 20, 2024, according to TradingView data. The stock closed down 3.25% at $171.42.

Dollar Reserve Announcement Sparks Market Reaction

Strategy, the world’s largest publicly listed bitcoin treasury company, revealed it has created a $1.44 billion U.S. dollar reserve. The fund is designed to support dividend payments tied to its preferred stock and cover interest on existing debt.

The treasury firm, which holds 650,000 BTC valued at roughly $56 billion, began accumulating bitcoin in 2020 under founder Michael Saylor’s thesis that BTC is a superior long-term store of value compared to the U.S. dollar. Much of its continued accumulation has been financed through preferred stock issuance and corporate debt.

Monday’s announcement marked a notable strategic shift as the company leans on fiat reserves to stabilize obligations during heightened crypto market volatility.

Profit Outlook Widens as Bitcoin Declines 30%

Strategy also revised its full-year forecast dramatically. The company now expects results to range anywhere from a net loss of $5.5 billion to net income of $6.3 billion—a massive spread reflecting the impact of bitcoin’s month-long decline.

BTC has dropped about 30% since hitting its all-time high in October, adding pressure to bitcoin-tied corporate valuations.

The wider earnings range underscores just how sensitive Strategy’s balance sheet is to bitcoin price swings, particularly as the company has increased its leverage over time through equity and debt financing.

Market Outlook

The combination of a new dollar reserve, volatile profit projections, and bitcoin’s continued weakness helped drive the sharp increase in trading volume, as investors recalibrated expectations for Strategy’s risk profile.

With BTC trading near $87,000, volatility remains the central factor shaping investor sentiment toward bitcoin treasury companies—and Strategy remains the largest and most closely watched among them.

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