Strategy ( (MSTR) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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Strategy shares jumped after the company disclosed another major bitcoin purchase, signaling a continued aggressive bet on the cryptocurrency that amplifies its exposure to bitcoin’s price swings. Management also highlighted that the balance sheet remains highly sensitive to bitcoin’s volatility.
To fund the move, Strategy raised about $474M through at-the-market stock sales, then used roughly $329.9M of the proceeds to buy 4,871 bitcoin. This lifted its total holdings to 766,970 BTC, acquired at an aggregate cost of about $58.02B, with figures described by management as unaudited.
More about Strategy
YTD Price Performance: -21.14%
Average Trading Volume: 22,556,034
Technical Sentiment Signal: Sell
Current Market Cap: $41.41B
For further insights into MSTR stock on TipRanks’ Stock Analysis page.
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