What Happened?
Shares of bitcoin development company Strategy (NASDAQ: MSTR) fell 6.5% in the afternoon session after 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.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Strategy? Access our full analysis report here.
What Is The Market Telling Us
Strategy’s shares are extremely volatile and have had 63 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 6 days ago when the stock gained 4.9% on the news that the company disclosed it purchased an additional 10,624 bitcoins for approximately $962.7 million. This acquisition, which marked its largest in several months, brought the company's total holdings to 660,624 bitcoins. The purchase was funded through the sale of company stock and reinforced its core strategy of holding Bitcoin as a primary treasury reserve asset. The move signaled the firm's strong belief in the long-term value of the cryptocurrency. This conviction was further highlighted when the company's CEO, Phong Le, stated there were no plans to sell its Bitcoin holdings until 2065, suggesting a commitment to hold through decades of potential volatility.
Strategy is down 45.2% since the beginning of the year, and at $164.50 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 $5,756.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report.
