Bold or Reckless? Strategy Buys 24,869 Bitcoin Only to See MSTR Stock Drop 6%
Shares of Strategy (MSTR), the world’s first and largest Bitcoin (BTC-USD) treasury, fell over 6% after the firm purchased extra coins. The company deployed about $2.01 billion into the latest purchase, lifting total holdings above 843,000 BTC. Investors are showing caution amidst Bitcoin’s price decline and growing volatility. They are focused on how Strategy is building its BTC position through equity funding and its new STRC preferred stock.
Strategy Expands Bitcoin Holdings Again
Between May 11 and 17, Strategy added an extra 24,869 Bitcoin to its substantial stash, worth about $2.01 billion. The average price of this new purchase stood near $80,985 per token, with the company’s founder and executive chair, Michael Saylor, confirming the move on X on May 19.
Following the latest deal, Strategy’s total holdings reached 843,738 BTC. The company has now spent about $63.87 billion on Bitcoin, with an average cost of about $75,700.
To fund the purchase, Strategy raised about $2.03 billion through stock sales during the same period. STRC preferred share sales generated around $1.95 billion, while additional MSTR share sales added another $83.7 million.
Strategy Adds More BTC as Crypto Markets and MSTR Turn Volatile
Strategy’s recent BTC purchase was disclosed during a turbulent stretch for the cryptocurrency market. On May 18, the company’s stock, MSTR, dropped roughly 6% as Bitcoin fell to a two-week low near $76,000.
The decline came amid rising U.S.-Iran tensions and surging oil prices. This broader market crash also triggered nearly $600 million in leveraged crypto liquidations, adding more pressure across digital assets and crypto-linked equities.
By the time Strategy publicly revealed its latest acquisition, Bitcoin had already slipped to roughly $76,800. That left the newly purchased BTC temporarily underwater by roughly $4,000 per coin, representing a massive paper loss of about 5% on the company’s latest $2 billion allocation.
Despite this decline, Strategy’s overall Bitcoin position remains in profit. Across its total stash of 843,738 BTC, the firm’s blended average purchase price is around $75,700 per coin. With Bitcoin trading near $76,800, Strategy’s unrealized gains remain at roughly $900 million.
Is MSTR a Good Buy?
Strategy (MSTR) is rated a Strong Buy based on TipRanks analyst data, with an average price target of $323 and about 95% upside from current levels. Analysts point to strong Bitcoin exposure and continued accumulation as key strengths supporting long-term growth. Investors can track MSTR ratings, price targets, and stock performance on TipRanks Stocks Comparison Center.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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