Strategy (MSTR), the world’s largest corporate holder of Bitcoin, just snatched up nearly $1 billion worth of the cryptocurrency, a welcome sign for shareholders after a difficult period. In a securities filing Monday, the company disclosed it bought 10,624 Bitcoin tokens between December 1 and December 7 for $962.7 million, averaging $90,615 per token. This massive haul brings Strategy’s total Bitcoin holdings to more than $60.6 billion.
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The stock immediately reacted to the news, trading up 1.9% in premarket Monday. This aggressive accumulation marks a sharp turnaround from the previous two weeks, when the firm added just 130 tokens, opting to sit on the sidelines during a market pullback. The filing signals that Executive Chairman Michael Saylor and Strategy are now buying the dip.
Saylor Buys the Dip On Bitcoin to Restore Stock Premium
Strategy’s decision to spend nearly a billion dollars indicates the company is confident about the direction of Bitcoin itself and, critically, about the value of its own stock.
Strategy shares have tumbled 61% from their July record high, and the stock’s so-called mNAV (the multiple the company trades at relative to its Bitcoin holdings) has deteriorated. By buying up Bitcoin, Strategy signals its belief that these purchases will help expand that mNAV premium—meaning the company is confident that its Bitcoin treasury will drive its stock price higher, beyond just the value of the coins it holds.
Cantor Fitzgerald analysts Brett Knoblauch and Gareth Gacetta, who recently cut their price target on Strategy, affirmed that the company’s model is to “acquire Bitcoin when it is accretive to do so, irrespective of Bitcoin’s price.” This suggests the latest massive purchase meets that internal criteria. As investors have learned this year, the fate of Strategy stock is inextricably tied to where Bitcoin goes.
Is Strategy a Good Stock to Buy?
Analyst sentiment toward Strategy (MSTR) is strongly bullish, rated as a Strong Buy based on the consensus of 14 analysts tracked in the last three months. Of these ratings, 12 analysts call it a Buy, two recommend a Hold, and zero recommend a Sell.
The average 12-month MSTR price target sits at $493.58. This target implies a massive upside potential of 175% from the last price.
