MSTR to Zero: What the Bears Are Getting Wrong

Whenever I talk to an MSTR hater, I noticed most of them mock Strategy and say the company’s stock will go to zero.

In this article, I want to debunk that FUD and clearly explain why it’s almost impossible for MSTR shares to go to zero (unless Bitcoin fundamentally collapses and fails).

Will MSTR Go to Zero?

I ran a poll on my MSTR Investor Youtube channel to ask my audience what chance MSTR stock had to crash to $0. Here are the results so far:

What are The Odds That MSTR Goes to $0?

There is around a 13% chance of Strategy (formerly known as MicroStrategy) stock going to zero because Michael Saylor built a strong and durable company that could survive any crypto bear market or recession.

Strategy made several key changes to the company that helps protect it against severe bankruptcy risk:

• MSTR has a $2.2 Billion USD reserve setup to cover future dividend payments on its preferred shares
• Strategy could simply sell Bitcoin to pay off its $8 billion debt obligation to convertible note holders to cancel the debt
• With so much Bitcoin on its balance sheet, Strategy could simply trim its holdings just in case Bitcoin really does crash well below $50,000 or worse

If MSTR Stock Doesn’t Go to Zero, It’s Going to $10,000

The reality is that if MSTR stock doesn’t crash to $0 then it’s going to well over $10,000 in the next 10 years.

Here are a couple of key points to remember about MSTR:

• MSTR has increased its BTC per share for 5 years in a row (Source: SaylorTracker.com)
• BTC Per Share Prevents MSTR from Crashing to Zero unlike fiat-denominated stocks
• Most fiat stocks dilute shareholders to raise working capital for growth and stability but never become profitable (i.e. achieve positive EPS)
• Bankrupt companies rarely hold Bitcoin on its balance sheet (they usually liquidate BTC before it all comes crashing down)

As a 20 year stock market veteran, I’d made my fair share of horrible investments in fiat stocks that endlessly dilute shareholders over time.

How Fiat Stocks Go to Zero with Harmful Dilution

A good example of harmful dilution happened to me personally when I bought AMC Entertainment (NYSE: AMC) in September 2023 at the tail end of the Gamestop/AMC Meme stock era.

AMC stock was pumping over $10 and I was up big on my AMC call options afterhours. AMC CEO Adam Aaron diluted shareholders premarket with an unexpected ATM offering that caused the stock to crash greatly during premarket hours.

Fast forward to today, AMC just above $1. The company abused ATM dilution of AMC shareholders and caused AMC shares to lose 97% of their value over the last 5 years.

In fact, the majority of Wall Street firms use the same strategy to dilute their shareholders and sometimes send the company stock towards zero.

A couple of other examples that I burned on are:

• Genius Brands (GNUS)
• Lucid Group (LCID)
• Bed, Bath, and Beyond (BBBY)

Bitcoin Won’t Go to Zero Even If MSTR Dumps 100% of its BTC Treasury

Some haters argue that Bitcoin is at risk due to Strategy’s aggressive BTC allocation strategy. While MSTR does hold a lot of Bitcoin, I think people forget that major US banks are finally embracing Bitcoin in 2026 and plan to launch a phethora of Bitcoin ETFs and other new products to keep their clients happy.

If Strategy had to sell its BTC holdings then other companies would simply scoop up their holdings.

With only 21 million Bitcoin in total existence, I think BTC will never hit zero due to its absolute scarcity.

How to Profit From Collapsing MSTR Stock Prices

Instead of complaining online about MSTR stock crashing, smart investors are learning how to trade MSTR options to profit from Bitcoin’s extreme volatility.

Buying MSTR put options is the easiest way to make money when MSTR stock goes down.

A long put option gives you the right but not the obligation to sell MSTR stock at a specific strike price on an exact expiration date. Each options contract represents 100 MSTR shares.

If you want to learn how to buy and sell MSTR put options then buy a copy of my eBook, MSTR Options Cashflow, to make your first $1 as an options trader.

It’s best to hedge your MSTR portfolio with put options during the 2026 crypto bear market so you can make money as MSTR survives another brutal 75% drawdown.

This strategy paid off well in 2022 since MSTR bottomed in January 2023 and went on a massive rally to close out 2024.

My research shows that something similar could happen again in the 2nd half of 2028 after the 2028 Bitcoin Halving.

Risk Factors

I’ve published several reasons why MSTR stock won’t go to zero but I didn’t cover the risk factors that could send Strategy into a potential Chapter 11 bankrupcty.

Here are some risk factors to consider if MSTR could go to $0:

• Quantum Computing: Google published a whitepaper warning that Quantum Computing could crack Bitcoin in less than 9 minutes (Source: TheStreet.com). I don’t know much about QC but even Michael Saylor made some comments about it during the Q4 2025 Strategy Earnings Conference Call.
• BTC Per Share Declines: BTC per Share is the bread and butter of this company. If BTC per shares declines over time then most investors will just dump their shares and buy spot BTC or IBIT.
• STRC is a Failure: Stretch is a wonderful invention that strips the volatility from BTC and provides consistent monthly dividend payments at the end of each month. The problem is STRC could fail or lose capital to other competitor products (IBIT, BITA, BTC).
• BTC Custody Issues: Strategy holds 100% of its Bitcoin across 3 separate custody partners (Coinbase Custody Trust Company, LLC, Anchorage Digital Bank N.A, and Fidelity Digital Assets, NA). Many Bitcoiners truly believe in the mantra “Not your Keys, not your coins” so any 3rd party custody problems could send MSTR stock crashing in a hurry!

If STRC fails to live up to its hype then more common stock dilution may put a lot of selling pressure on MSTR shares.

If these risk factors happen then MSTR stock could very well dip below $100 and scare off A LOT of intelligent investors.

I don’t think this will happen but it’s something to think about.