Saylor Crypto Imitators Beleaguered as Doubts Grow Over Business Model

Enthusiasm for Michael Saylor’s Strategy (MSTR)—and some of its imitators—has been fading, with shares of those companies tumbling over the past month, David Hollerith and Laura Bratton reported for Yahoo Finance.

Despite recent weakness, the stock of Saylor's company is still up 2,200% since its initial Bitcoin bet. (Image: Michael Taylor X)

Earlier in the week, the total market capitalization of crypto fell by as much as $33 billion, according to CoinMarketCap.

About $1.69 billion in positions were liquidated in the crypto derivatives market over the past 24 hours, according to Coinglass. Strategy’s stock has slipped roughly 2%—in line with Bitcoin—over the past 30 days.

The company piled into Bitcoin beginning in 2020, using a mix of debt and equity to fund massive purchases that transformed the business intelligence firm into a crypto juggernaut.

Despite recent weakness, its stock is still up 2,200% since its initial Bitcoin bet.

Several imitators have since tried to replicate Strategy’s approach. Firms in unrelated industries pivoted to accumulate Bitcoin in hopes of repeating its stock success.

But in recent weeks, many have suffered steep losses. Japanese hotel management firm-turned-Bitcoin holder Metaplanet has dropped more than 27% over the past month, while healthcare data provider Kindly MD has shed 87%.

Shares of Trump Media & Technology Group (DJT) are flat.

A vehicle spun up by New York investment bank Cantor Fitzgerald has lost 9% as it prepares to take public a Bitcoin treasury company called Twenty One Capital, backed by Japanese software firm SoftBank and stablecoin issuer Tether.