MSTR stock is up today on news that the firm has purchased new Bitcoin, continuing strategy of aggressive accumulation. The company revealed in a quarterly filing with the Securities and Exchange Commission that it had bought 4,871 BTC between April 1st and April 5th while spending around $329.9M at an average price of about $67,718 per Bitcoin.
With this recent buy, Strategy now owns 766,970 BTC in total now for a price tag of $58.02 billion at an average buy cost of 1 BTC = $75,644.
The announcement follows a similar one made just days earlier in which Executive Chairman Michael Saylor indicated that the company would return to buying Bitcoin. His post on social media, which included a picture of the firm’s Bitcoin portfolio and was captioned “₿ack to Work,” suggested weekly acquisitions would continue.
As a reminder, this latest purchase comes after the company had stopped buying in the week ending March 29—this new hands-on-deck move marks a clear inbound signal for momentum with its Bitcoin strategy.
It seems investor sentiment reacted positively. MSTR shares climbed more than 4% in early trading, with the stock crossing from last week’s closing price of $120 to around $125 in before-market trading, per TradingView data. Even with this brief rally, the stock is still down over 22% year to date, reflecting continued volatility linked to Bitcoin price fluctuations and wider market conditions.
The rise of MSTR stock is also fueled by macroeconomic factors. Market sentiment has also been buoyed by optimism of a possible ceasefire in the U.S.-Iran conflict, which is now into its sixth week.
While negotiations are not guaranteed, especially with Iran allegedly pushing back on Strait of Hormuz-related demands, the prospect of de-escalation has buoyed risk assets. MSTR and stocks related to cryptocurrencies are following Bitcoin’s lead, with the leading digital asset reclaiming the $70,000 mark, a major psychological level for investors.
Another key factor that is supporting the stock price of MSTR is decreased selling pressure on its common shares. Per the SEC filing, only a portion of this Bitcoin purchase was funded by selling STRC stock rather than heavily diluting MSTR shares.
On March 31 and March 30, the company sold about 2.3 million STRC shares and 582,550 MSTR shares for net proceeds of $227.3 million and $72 million, respectively. From April 1 to April 5, it sold another 1 million STRC shares and MSTR shares of the company at a rate of 593,294 shares raising $102.6 million and $72 million respectively.
This funding model matches previous reports that Strategy had raised enough capital in its STRC offerings to carry on with its Bitcoin purchasing strategy. Importantly, the company has relied more on STRC stock than MSTR stock in its last three at-the-market (ATM) programs, which should alleviate dilution concerns among shareholders.
But financial disclosures also show hidden dangers. For the three months to March 31, Strategy posted an unrealized loss of $14.46 billion on its Bitcoin investments with a carrying value of $51.65 billion. This highlights the sensitivity of its balance sheet to Bitcoin price swings, even as the company continues to double down on its long-term crypto investment thesis.
