Bitcoin, the world’s largest cryptocurrency, has been walloped this year as the crypto winter has dragged on.

Few investors have felt that more than the Bitcoin-treasury company Strategy (MSTR 6.20%), which is essentially a levered play on Bitcoin.

Just as leverage lifts gains on the way up, it also exacerbates losses on the way down. Strategy’s stock is down close to 45% this year.

With Bitcoin trading below $59,000 per token, as of this writing, Strategy just announced a major revamp to its business model.

Here’s what investors need to know.

Image source: Getty Images.

Building up reserves

Strategy rose to prominence in 2020. At the time, former CEO Michael Saylor, who is now the company’s executive chairman, made a big…