Strategy liquidity crushes tech giants, but why is Michael Saylor still worried about the stock price

Strategy founder Michael Saylor recently posted a set of data on X, claiming that the company’s 30-day average trading volume to market cap ratio reached 7.2%, far surpassing tech giants like Tesla (2.3%), Nvidia (0.7%), Meta (0.8%), and others. This comparison is indeed eye-catching, but the underlying story behind it is even more worth paying attention to.

The True Meaning of Liquidity Data

What is the trading volume to market cap ratio

The trading volume to market cap ratio (Turnover Ratio) is an important indicator of a stock’s liquidity. The higher the ratio, the more active the stock is relative to its market value, indicating higher liquidity. Strategy’s 7.2% means that, on average over 30 days, the trading volume is equivalent to 7.2% of its total market cap, which is indeed rare in the US stock market.

In comparison, Tesla, as one of the most active tech stocks globally, has a ratio of only 2.3%. Nvidia, Meta, and other chip and tech giants are even lower, ranging between 0.2% and 0.8%. This shows that Strategy’s stock trading activity is indeed far more active than many tech giants.

Why is Strategy’s liquidity so high

According to Michael Saylor, this is because “Bitcoin makes Strategy more liquid.” This explanation has some validity. As the world’s largest publicly listed company holding Bitcoin, Strategy’s stock price is highly correlated with Bitcoin’s price. The 24-hour trading and high volatility of the Bitcoin market attract many investors to frequently trade Strategy stocks to participate in Bitcoin’s price movements.

In contrast, traditional tech companies like Tesla and Nvidia, although also held by many investors, have their trading driven by fundamentals and technical factors, with relatively lower volatility, naturally leading to less frequent trading.

The Contradiction Between High Liquidity and Stock Performance

It seems that Strategy outperforms tech giants in liquidity, but related information reveals an awkward reality:

Strategy’s stock price fell 47.5% in 2025, marking the first six consecutive months of decline since adopting the Bitcoin treasury strategy. This starkly contrasts with its “most liquid” halo.

High liquidity does not equal good investment returns

A key point to clarify here is: high liquidity means easy to buy and sell, but does not necessarily mean a good investment. In fact, high liquidity often accompanies high volatility. Strategy’s stock price fluctuates sharply with Bitcoin’s price swings, attracting many short-term traders and arbitrageurs, which pushes up trading volume.

However, from a long-term investment perspective, this high liquidity can be a warning sign. It indicates that market confidence in Strategy’s “leveraged Bitcoin” strategy is wavering. Investors are more engaged in frequent trading to capture short-term fluctuations rather than holding long-term positions.

The Hidden Cost of Equity Dilution

Related reports also mention that Strategy raises funds by frequently issuing new shares to buy Bitcoin. While this quickly accumulates Bitcoin holdings, it also dilutes existing shareholders’ equity. As the company keeps issuing new shares, the value per share is being diluted.

This explains why, even when Bitcoin prices are rising, Strategy’s stock performance remains lackluster. Shareholders face a dilemma: Bitcoin holdings are appreciating, but their ownership stake is being continuously diluted.

The Market Signal Behind It

Michael Saylor predicted at the beginning of 2025 that Bitcoin would reach $150,000 by year’s end, but Bitcoin ultimately hovered around $88,000. This forecasting miss itself reflects market skepticism about his judgment.

Behind Strategy’s high liquidity, the market is actually reassessing the risk-reward ratio of this “using equity to acquire Bitcoin” strategy. High liquidity allows investors to enter and exit quickly, which in some ways acts as a “escape route.”

Summary

Strategy’s trading liquidity indeed far exceeds that of tech giants, and that is a fact. But this data alone does not indicate investment value. High liquidity may instead signal active arbitrage and market uncertainty. Strong liquidity means easy trading, but also more frequent attempts by traders to top-tick the market.

What truly matters is the long-term return on holding. From this perspective, Strategy’s story is far from over, and the market’s final evaluation is still taking shape.