Shares of bitcoin development company Strategy experienced a notable rise of 2.7% in the afternoon session following the announcement of an additional purchase of 390 Bitcoin, totaling approximately $43.4 million. This latest acquisition, which occurred between October 21 and October 26, brings Strategy’s total Bitcoin holdings to 640,808 BTC, reaffirming its status as the largest corporate holder of the cryptocurrency.
According to the company’s recent filing, the purchase was financed without the issuance of new common stock, thereby protecting existing shareholders from dilution of their ownership stakes. This move aligns with Strategy’s ongoing strategy of utilizing its balance sheet to acquire Bitcoin, a tactic that has attracted many investors seeking exposure to Bitcoin price fluctuations through the company’s stock.
By the end of the trading day, Strategy’s shares settled at $295.67, reflecting a 2.3% increase from the previous close. However, the stock’s performance remains volatile, having demonstrated 68 movements exceeding 5% over the past year. Today’s price increase suggests that the market views the recent acquisition as significant, although it does not fundamentally alter perceptions of the business.
Just five days prior, the company experienced a setback when its stock dropped by 5% in response to a decline in Bitcoin’s market price. This drop—from nearly $112,000 to around $108,000—impacted multiple companies associated with cryptocurrency, including Strategy, Coinbase, and MARA Holdings. This decline coincided with a broader sell-off in technology stocks, affecting global market sentiment.
Year-to-date, Strategy’s stock is down 1.7%, and it currently trades at $294.87 per share, which is 37.8% lower than its 52-week high of $473.83 reached in November 2024. For investors who purchased $1,000 worth of Strategy shares five years ago, their investment has appreciated significantly, now worth approximately $16,794.
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