
tl;dr
While Strategy (MicroStrategy) continues to expand its Bitcoin holdings, its stock faces significant pressure despite the cryptocurrency's growth.
**Strategy Expands Bitcoin Holdings, But Stock Faces Pressure**
Strategy (formerly MicroStrategy) has further bolstered its Bitcoin reserves, acquiring 196 BTC for $22.1 million at an average price of $113,048 per coin, according to an SEC filing dated September 29. This transaction marks the company’s third-smallest Bitcoin purchase of the year, following smaller buys of 130 BTC in March and 154.64 BTC in August. The addition brings Strategy’s total Bitcoin holdings to 649,031 BTC, representing 3% of the total supply and solidifying its position as the largest corporate Bitcoin holder.
The firm’s Bitcoin portfolio, now valued at $72.67 billion at current prices above $110,000, reflects an unrealized profit margin of 53.47%. Strategy has invested approximately $47.35 billion in its Bitcoin position, with an average cost of $73,983 per coin. The purchase was funded through proceeds from at-the-market equity offerings of its Class A common stock (MSTR) and two perpetual preferred stock instruments, STRF and STRD. The company raised $128 million via these sales, providing liquidity for continued Bitcoin accumulation.
Despite its aggressive Bitcoin strategy, Strategy’s stock (MSTR) has faced significant pressure. The shares fell to their lowest level in six months, hitting near $300 on September 29, according to CryptoQuant analyst JA Maartun. The stock retraced from a mid-July high of $455.90 to approximately $309.06 by September 26, a 32.5% decline over a month. This contrasts with Bitcoin’s 22% year-to-date gain, while MSTR has risen 11% this year.
The stock’s weakness has pushed Strategy’s market-adjusted net asset value (mNAV) to 1.39x, the lowest since 2025. However, Chief Risk Officer Jeff Walton defended the company’s long-term outlook, stating that even if mNAV fell to parity, MSTR would have outperformed Bitcoin more than 2x since adopting its Bitcoin-focused strategy. Walton emphasized the resilience of the company’s returns, despite short-term market volatility.
As Strategy continues to prioritize Bitcoin as a core asset, the divergence between its stock performance and the cryptocurrency’s gains highlights the challenges of balancing corporate financials with speculative digital asset investments. While the company’s Bitcoin holdings remain a cornerstone of its strategy, investors remain cautious about the broader implications for MSTR’s valuation.