MSTR Stock Hits 52-Week Low as Bitcoin Drops Below $84K

TLDR

• MSTR stock dropped to a 52-week low of $140.25, reflecting a 10% decline as Bitcoin fell below $84K.
• The fall in Bitcoin’s price contributed significantly to the sharp drop in Strategy’s stock value.
• Strategy purchased an additional 2,932 BTC for $264 million, raising its total Bitcoin holdings to over 712,000 BTC.
• The company’s total Bitcoin holdings now represent 3.4% of Bitcoin’s total supply, with an average purchase price of $76,037 per coin.
• Strategy raised $264 million through its at-the-market offering program by selling shares of its common and preferred stock.

Strategy’s MSTR stock price fell to a session low of $140.25 on Thursday, dragging the stock to the bottom of its 52-week range, and ending the session at $142.88, down nearly 10% from the previous close, as Bitcoin slid over 6% to $83,559 and broader tech markets posted losses.

Strategy Inc, MSTR

The company’s stock, which often moves in line with Bitcoin’s price swings, tracked the cryptocurrency’s steep decline and posted its sharpest drop in recent weeks. Strategy’s heavy exposure to Bitcoin and weakening market conditions triggered the sell-off.

Bitcoin Falls Below $84K, Sending Strategy Stock Lower

Bitcoin dropped over 6% in the last 24 hours to trade near $83,559, according to Bitcoin Magazine data. The cryptocurrency’s slide contributed heavily to Strategy’s decline on Thursday.

During the session, MSTR stock hit $140.25, touching the lowest point in its 52-week trading range. The stock closed at $142.88, down nearly 10% intraday.

Strategy often trades as a proxy for Bitcoin due to its massive cryptocurrency holdings. Its shares tend to mirror or amplify Bitcoin’s movements.

At the time of writing, Bitcoin was 7% lower than its weekly high of $89,639. It also stood just above its weekly low.

Bitcoin’s 24-hour trading volume reached $61 billion during the latest session. The fall in price reflected increased selling pressure.

MSTR Stock Drops After Fresh Bitcoin Purchase

Earlier this week, Strategy acquired 2,932 BTC for $264 million, boosting its total Bitcoin stash to 712,647 BTC. The company paid an average price of $90,061 per coin for this latest batch.

Strategy funded the purchase using proceeds from its at-the-market offering program. The company raised capital through common and preferred stock sales.

It sold 1,569,770 shares of MSTR stock, generating $257 million in net proceeds over five days. It also sold 70,201 shares of STRC preferred stock for $7 million.

This brought the total ATM offering proceeds to $264 million. The company confirmed these sales in a regulatory filing.

As of January 25, Strategy disclosed $8.17 billion in remaining capacity under its ATM programs. These programs allow continued fundraising through equity offerings.

The firm also maintains preferred stock programs under STRK, STRF, STRC, and STRD. These programs provide access to potential future capital.

Strategy Now Holds 3.4% of All Bitcoin

With 712,647 BTC, Strategy now owns approximately 3.4% of Bitcoin’s 21 million total supply. This aligns with its position as a Bitcoin treasury firm.

The company’s average purchase price across all holdings stands at $76,037 per coin, totaling $54.2 billion including fees. The data includes the latest acquisitions.

Bitcoin’s current market price is now nearly 9% below Strategy’s recent purchase price. The mismatch may add pressure to the company’s financials.

Thursday’s market downturn extended beyond Bitcoin and Strategy. Microsoft lost over 11%, and Apple was set to report after the close.

Meta, however, saw its shares climb 11% following strong earnings. Broader market sentiment remained cautious during the session.

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