MSTR Stock Gains Weakened by Ongoing Sales

MSTR stock has seen significant gains in August 2026, rising by 30% from $94 to $127. The increase can be attributed to two factors: a Bitcoin price recovery and the company's growing USD reserves.

An analyst, Jeff Dorman, notes that Strategy's net leverage has been reduced to 0.1%, but warns that ongoing stock sales are weakening the company's thesis as a leveraged Bitcoin play.

Dorman points out that Market-to-Net-Asset Value (mNAV) will likely remain stuck at 1, indicating that MSTR is trading at par with its Bitcoin holdings. He believes this lack of growth makes MSTR a 'boring' stock to purchase, with only 20% more upside than owning BTC.

Dorman has since covered all his short positions on MSTR after the company increased its cash reserves, but notes that ongoing gains may be due to traders forced to buy into the stock after covering their shorts.