Strategy Stock ($MSTR) Slides 7% as Aggressive Bitcoin Buying Continues

Bitcoin Magazine

Strategy Stock ($MSTR) Slides 7% as Aggressive Bitcoin Buying Continues 

Strategy (MSTR) made headlines this morning for its continued ambitious Bitcoin accumulation strategy, even as its stock struggles under mounting investor pressure. 

On Tuesday, shares of the Bitcoin-focused company fell over 7% in early trading at times, despite the firm officially surpassing the 700,000-BTC milestone.

The latest acquisition, disclosed January 20, adds 22,305 Bitcoin to Strategy’s treasury at an average cost of $95,284 per coin, bringing total holdings to roughly 709,715 BTC. The purchases were funded through the company’s at-the-market (ATM) equity and preferred stock programs, which raised about $2.125 billion in net proceeds between January 12 and 19. 

Sales included 2.95 million STRC variable-rate preferred shares and 10.4 million MSTR Class A common shares, with smaller amounts raised via STRK preferred stock.

While the milestone cements Strategy’s position as the world’s largest corporate holder of Bitcoin, representing over 3% of the cryptocurrency’s total circulating supply, the stock decline shows how closely Strategy still follows the price of Bitcoin.

Bitcoin plunged over 5% in just 36 hours, dipping below $90,000 as macro uncertainty and scrutiny of corporate bitcoin treasuries spooked the market. A sharp $4,000 drop Sunday night was fueled by over $500 million in liquidations in crypto derivatives.

Analysts say MSTR’s recent price weakness stems from issuing millions of new shares to buy Bitcoin, with TD Cowen recently cutting its price target to $440 due to a “weaker outlook for Bitcoin yield.”

Institutional interest in Strategy ($MSTR)

Despite the sell-off, institutional interest in Strategy remains notable. Last week, Vanguard Group disclosed a $505 million investment in MSTR, marking its first entry into the company’s stock. 

Technical analysts point to an inverted head-and-shoulders pattern forming on the daily chart, suggesting a potential bullish reversal if shares can sustain a breakout above $175. Failure to hold above $168 could, however, trigger a drop below $160.

The latest tranche of Bitcoin was acquired at an aggregate cost above Strategy’s historical average of $75,979 per BTC, illustrating the firm’s willingness to continue scaling its holdings despite elevated prices. 

Saylor has repeatedly emphasized the company’s long-standing “capital markets-to-Bitcoin” approach, using equity issuance to fund crypto accumulation.

Speaking at the Bitcoin MENA conference last year, Saylor framed Bitcoin as the foundation of a new era in digital capital and credit, not just an investable asset. 

Saylor said that major U.S. banks have moved from cautious observers to offering Bitcoin custody and credit solutions.

He argued that, like gold historically, Bitcoin could underpin a global digital credit system, aligning long-term growth with investor returns.

This post Strategy Stock ($MSTR) Slides 7% as Aggressive Bitcoin Buying Continues  first appeared on Bitcoin Magazine and is written by Micah Zimmerman.