MSTR Surges 40% as Bitcoin Rally Lifts Strategy Stock
Michael Saylor's Strategy (MSTR) stock is making a strong comeback after rising nearly 40% in one month from $82 to $140. The rally comes as Bitcoin recovered from the $60,000 range to above $80,650.
The large $BTC holdings of Strategy have also turned earlier paper losses into billions of unrealized gains. As a result, MSTR is highly sensitive to $BTC price moves, with every $1,000 move in $BTC changing the value of Strategy's holdings by roughly $840 million.
Strategy held 840,447 $BTC at an average cost of $75,385 per Bitcoin. When $BTC fell into the low-$60,000 range, the company was facing an estimated $9.5 billion paper loss. However, after Bitcoin moved above $80,000, that position turned into an estimated $4.2 billion to $4.7 billion unrealized profit.
The size of Strategy's treasury makes MSTR highly sensitive to Bitcoin price moves. The company also raised $2.01 billion by selling 18.26 million MSTR shares through its ATM program and placed around $1.59 billion into a new USD cash pool, reducing its future 12% dividend costs.