Key Takeaways
Strategy sold over $300 million worth of MSTR common stock to fund the latest BTC purchase. The stock’s price dropped twice as much as BTC in the past few days.
Michael Saylor announced that Strategy (formerly MicroStrategy) acquired an extra 3,081 Bitcoin [BTC] for about $357 million.
The latest purchase increased the firm’s holdings to 632,457 BTC, officially crossing the 3% of total BTC supply. Interestingly, in early August, Saylor suggested the firm could go for 3-7% of BTC supply.
Even more interesting? Most of the recent capital was raised from selling MSTR common stock.
According to Strategy’s filing with the SEC, it sold 875,301 MSTR shares (worth $310 million) in the past seven days.
Source: SEC
MSTR dilution or ‘strategic’ buys
The use of MSTR to buy BTC was noteworthy as it aligned with Saylor’s new ATM (at-the-market) guidance.
He recently instructed the use of MSTR for new BTC bids even if the premium (mNAV) dropped below 2.5x, sparking criticism of stock dilution.
Still, some analysts viewed it as a strategic move to acquire more BTC via the MSTR stock sale.
In fact, renowned MSTR analyst Jeff Walton said that MSTR was ripe for S&P 500 Index inclusion, citing its deep liquidity for being the “14th largest publicly traded equity by volume.”
“$MSTR now ranked 106th largest US company by market cap ($97.6B). Day 39 in a row of qualifying for S&P 500. 14th largest publicly traded equity by volume.”
However, it’s unclear when the MSTR will be included in the index.
BTC pullback hits MSTR harder
Meanwhile, MSTR didn’t handle the recent BTC pullback so well.
The reason is – while BTC dropped above 10% from over $124K to $110K, MSTR dumped nearly twice as much (20%) from $457 to $325.
Source: MSTR vs BTC performance, TradingView
Obviously, this wasn’t surprising since MSTR has always offered about 2x volatility exposure to BTC due to the Strategy’s massive holdings.
But the stock was below the 200-day Simple Moving Average (SMA), a key level it has defended throughout 2025. As such, an extra BTC pullback below $110K could put MSTR bulls in danger.
