What Happened?
Shares of bitcoin development company Strategy (NASDAQ:MSTR) jumped 4.8% in the morning session after the price of Bitcoin rose, boosting sentiment for crypto-related stocks. As one of the largest corporate holders of the cryptocurrency, Strategy's valuation was closely tied to its price movements. Bitcoin held near $87,000, up nearly 1.9% on the day.
After the initial pop the shares cooled down to $164.37, up 3.5% from previous close.
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What Is The Market Telling Us
Strategy’s shares are extremely volatile and have had 61 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 6.5% on the news that investor concerns mounted over its strategy of funding large Bitcoin purchases through share sales. The company disclosed it bought another 10,645 bitcoins for about $980 million, financing the purchase by selling its own stock. This action led to share dilution, and for the first time in years, a core metric tracking Bitcoin held per share turned negative. This meant existing shareholders now owned a smaller slice of the company's Bitcoin holdings. Compounding the issue, the price of Bitcoin itself fell below $90,000, adding pressure on the stock. Furthermore, reports surfaced that index provider MSCI was considering excluding Strategy from its indexes, a move that JPMorgan estimated could trigger outflows of $8.8 billion from institutional funds.
Strategy is down 45.2% since the beginning of the year, and at $164.37 per share, it is trading 63.9% below its 52-week high of $455.90 from July 2025. Investors who bought $1,000 worth of Strategy’s shares 5 years ago would now be looking at an investment worth $5,175.
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