Bitcoin's Decline Raises Questions About Strategy Group's Stock Performance

A 12% drop in Bitcoin's value over the past month has triggered investor concerns about Strategy Group Inc. (SGI), whose market valuation has declined by 18% amid broader crypto-related sector weakness. Analysts are reassessing the company’s exposure to digital assets.

Strategy Group Inc. (SGI) is facing renewed scrutiny after its stock fell 18% in December 2025, coinciding with a 12% decline in Bitcoin's price since early November. The correlation between the crypto market's downturn and SGI’s performance has raised alarms among investors, particularly given the company’s 14% stake in blockchain infrastructure ventures disclosed in its Q3 2025 earnings report. The company's market capitalization has now settled at $4.2 billion, down from $5.1 billion in October, reflecting investor anxiety about its technology exposure. SGI reported $320 million in revenue during the third quarter, a 6% increase year-over-year, but profit margins narrowed to 19%—a 3-percentage-point drop from the same period in 2024, attributed in part to higher digital asset-related operational costs. Sector-wide, companies with significant crypto-linked exposure have seen average declines of 15% since November, with fintech and data-center operators bearing the brunt. SGI’s recent investor presentation highlighted its diversification strategy, noting that 68% of its revenue now comes from non-crypto sectors, including cloud services and AI-driven analytics. Despite this, institutional holders reduced their positions in SGI by 11% in Q4, according to regulatory filings. The shift suggests growing caution toward any entity with material exposure to volatile digital assets, even when such exposure represents a minority of operations.