Shares of Strategy have experienced a slight decline of approximately 1.4% following the announcement of the company’s latest Bitcoin acquisition. Last week, Strategy invested around $100 million to buy 850 BTC at an average price of $117,344, bringing its total Bitcoin holdings to over 635,893 BTC, valued at about $72.25 billion. This represents a significant treasury that is more than ten times larger than that of the next largest treasury held by Bitcoin miner Marathon Digital Holdings (MARA).
Currently trading at $339.80, Strategy’s stock has seen a downturn of about 5.2% over the past month, which places it below the performance of Bitcoin itself, which has only declined roughly 1.6% in the same timeframe. To finance its recent Bitcoin purchase, the firm utilized approximately $19 million from its STRF preferred stock offering and over $80 million in net proceeds from its significant $21 billion MSTR common stock offering.
Despite the immediate dip in share value, analysts at TD Cowen maintain a bullish outlook, rating the stock a “buy” with a price target of $620. In a recent communique to their investors, they emphasized that the management believes the common stock is undervalued relative to Bitcoin’s current market price. They pointed to potential catalysts for growth, such as the stock’s impending inclusion in the S&P 500 index and the increasing integration of Bitcoin into mainstream economic and political frameworks.
Strategy, which initiated its Bitcoin acquisition strategy back in 2020, continues to employ five distinct at-the-market (ATM) offerings to generate funds for additional Bitcoin purchases. As per their latest press release, the company still has about $16 billion available under its common stock offering and over $30 billion remaining across its various preferred stock options—STRF, STRK, STRC, and STRD. Each of these offerings was launched earlier in the year to provide a range of Bitcoin exposure to investors with differing risk appetites.
