Strategy's Market Capitalization Soars 80% in Three Months

Strategy's market capitalization has seen an impressive 80% increase over the past three months, according to a chart posted by the company on X. This growth is reflected in the stock price, which has risen 54%. CEO Phong Le used a metaphor to describe this phenomenon, comparing STRC (a variable-rate perpetual preferred stock) to a 'passenger jet', Bitcoin to a 'fighter jet', and MSTR (the company's stock) to a 'rocket ship'.

When measured over the same period, the market capitalization of these three assets indeed followed Le's order. STRC gained around 11% from $88.79 to $98.78, Bitcoin increased by about 35% from $64,020 to $86,620, and MSTR rose by 54% from $109.46 to $168.50.

A closer look at the data reveals that a significant portion of Strategy's growth can be attributed to the issuance of new shares. The company spent the summer selling stock directly into the open market through an at-the-market (ATM) program, adding around 61.5 million new Class A shares and raising approximately $6.3 billion in net proceeds.

While some may argue that this dilutes the value of existing shareholders' investments, others see it as a savvy move by Strategy to increase its capital base. The company used much of the raised funds to rebuild its bitcoin hoard, buying 950 BTC for $75.7 million and repurchasing 1,771,238 STRC shares for $174 million.