TLDR
- Strategy’s Bitcoin reserves now total 649,031 BTC, worth $72.67B.
- MSTR stock drops 32.5% in the past month despite Bitcoin growth.
- Strategy raised $128 million via equity sales to fund Bitcoin purchases.
- Bitcoin’s price surge gives Strategy a 53.47% unrealized profit.
Strategy, the largest corporate holder of Bitcoin, has made a notable expansion in its Bitcoin holdings, acquiring 196 BTC for $22.1 million. This acquisition raises the company’s total Bitcoin reserve to a new high of 649,031 BTC, which now represents 3% of the total Bitcoin supply. However, the company’s stock, MSTR, has recently faced significant pressure, showing a sharp decline despite the growth in its cryptocurrency investments.
Bitcoin Purchases Increase Strategy’s Holdings
Strategy’s recent purchase of 196 BTC was made at an average price of $113,048 per coin, according to a filing with the U.S. Securities and Exchange Commission (SEC) on September 29. This acquisition marks the company’s third-smallest purchase in 2025, following earlier buys of 130 BTC in March and 154.64 BTC in August.
The company has now accumulated 649,031 BTC, with an average cost of $73,983 per coin. The total value of this position stands at $72.67 billion, based on Bitcoin’s current price of over $110,000. This represents an unrealized profit margin of 53.47%, indicating a strong return on the initial investment made.
Strategy Funds Bitcoin Purchases with Stock Offerings
To finance its ongoing Bitcoin acquisitions, Strategy raised $128 million through equity sales. The company issued Class A common stock (MSTR) as well as two perpetual preferred stock instruments, STRF and STRD. This move has allowed Strategy to maintain its Bitcoin buying spree, even as market conditions fluctuate.
The sale of equity to fund these purchases has sparked mixed reactions, particularly in the context of Strategy’s stock performance. Despite the increase in Bitcoin holdings, MSTR shares have experienced a sharp decline, with the stock falling to its lowest level in six months.
MSTR Stock Faces Decline Amid Market Volatility
Despite the growth in its Bitcoin reserves, Strategy’s stock (MSTR) has faced significant losses in recent weeks. The price of MSTR dropped 32.5% in the past month, falling from a high of $455.90 in mid-July to around $309.06 by late September. The decline is attributed to a combination of heightened market volatility and investor concerns about the company’s strategy.
The drop in stock value contrasts with the performance of Bitcoin, which has seen a 22% increase year-to-date. MSTR’s weaker performance has led to a decrease in its market-adjusted net asset value (mNAV), which now stands at 1.39x, the lowest recorded level for 2025.
Long-Term Outlook for Strategy and MSTR
While MSTR has faced short-term difficulties, analysts remain optimistic about the company’s long-term potential. Jeff Walton, Chief Risk Officer at Strive, suggested that MSTR’s long-term returns could remain resilient despite the current market slump. He noted that even if the mNAV were to drop to parity, MSTR’s performance since adopting its Bitcoin-focused strategy has still outpaced Bitcoin by more than 2x.
In the face of ongoing volatility, the strategy of accumulating Bitcoin continues to be a key part of its business model. However, the divergence between the company’s Bitcoin holdings and the performance of its stock could pose challenges for investors in the short term.
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