MSTR stock jumped nearly 4% on Monday, tracking Bitcoin’s ongoing rebound and Strategy’s continued push to expand its crypto holdings through aggressive capital raising.
Strategy, formerly known as MicroStrategy, was trading around $163.25, modestly above this year’s low of $155. Despite the recent bounce, the stock remains roughly 70% below its all-time high, underscoring the scale of its prior correction.
Strategy adds more Bitcoin through equity sales
In a statement, the company confirmed it had acquired 1,287 Bitcoin, lifting its total holdings to 673,783 BTC. At current prices, these holdings are valued at more than $62 billion, exceeding Strategy’s market capitalization of about $45 billion and slightly above its enterprise value of roughly $59 billion.
The latest purchase was funded through the sale of more than $1.9 billion in common shares. Strategy still has approximately $11.5 billion in at-the-money equity capacity available, highlighting the firm’s ongoing reliance on shareholder dilution to finance Bitcoin accumulation.
Cash position improves as mNAV falls below 1
Alongside its Bitcoin purchases, Strategy boosted its cash reserves by $62 million. Management has signaled a growing focus on cash accumulation as the company’s mNAV ratio slipped below 1. The firm expects this liquidity to support dividend payments and help service outstanding debt, potentially easing balance-sheet pressures over time.
Bitcoin rally supports MSTR sentiment
MSTR shares were also supported by strength in the broader crypto market. Bitcoin recently climbed to a high near $92,500, up around 15% from its December lows. At the same time, the Crypto Fear and Greed Index has moved out of the fear zone, while futures open interest has risen to roughly $140 billion, reflecting improving risk appetite among traders.
Dilution and technical risks remain
Despite the short-term optimism, Strategy continues to face notable risks. The most prominent is ongoing shareholder dilution, with outstanding shares now exceeding 300 million, up sharply from below 100 million in 2022.
From a technical perspective, both Bitcoin and MSTR stock are showing signs of vulnerability. Bitcoin has struggled to reclaim key trend indicators, raising concerns about a potential continuation of downside pressure. Similarly, MSTR shares remain below major support and resistance levels and key trend indicators, suggesting that sellers may retain control unless sentiment improves further.
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