Strategy Faces Pressure as Hedge Funds gain Control and Bitcoin Treasuries Fade
Strategy’s strong link to Bitcoin as a high-risk investment tool is fading. Hedge funds now dominate trading, and it’s biggest shareholder has cut its holdings.
According to 10x Research, Strategy’s stock price is nearing a crucial point. Its been hovering near $360 for months, testing this price as a floor.This level now decides if the stock will drop more or recover.
Vanguard,which owns the most Strategy stock,recently sold off 10%. Some investors bought in, but hedge funds control the market now. This makes the $360 level very importent.
Traditionally, Strategy gave investors a way to profit from Bitcoin’s ups and downs. But this link seems weaker. If the stock underperforms Bitcoin by 20% in a month, usually it’s a good time to buy. Yet, hedge fund behavior shows investor views changing.
Bitcoin treasuries are less appealing now due to lower volatility. Companies like Strategy have lost market interest. Stocks have fallen – Strategy by 13% and Metaplanet by 37% since mid-July. As bitcoin and Strategy become less risky, investors pay less for exposure.
New money is going to Ethereum treasuries and crypto IPOs, seen as better chances. This follows 10x research’s July call that Bitcoin treasuries would lose their advantage as summer calmed markets.
This leaves a big question: Should investors decide based on Strategy hitting $360 or on wider market trends that could boost Treasury-style investing again?
