MSTR Stock Skyrockets as Bitcoin Rally Ignites Billions in Unrealized Gains
Michael Saylor's company, Strategy (MSTR), has seen its stock surge nearly 40% in one month, from around $82 to $140. This jump comes as Bitcoin recovered from the $60,000 range to above $80,650.
The rally is largely attributed to Strategy's large BTC holdings, which have turned earlier paper losses into billions of unrealized gains. With a significant stash of 840,447 BTC at an average cost of $75,385 per Bitcoin, every $1,000 move in BTC changes the value of Strategy's holdings by roughly $840 million.
The company has also raised $2.01 billion by selling 18.26 million MSTR shares through its ATM program. Instead of using all the money to buy more Bitcoin, Strategy placed around $1.59 billion into a new USD cash pool and spent $136.4 million to buy back preferred shares.
As Bitcoin Wizard Adam Livingston has suggested, if Bitcoin climbs to $500,000, MSTR could reach $1,000. However, the stock remains closely tied to Bitcoin's price movements, so a sharp drop in BTC could quickly erase its recent gains.