Strategy (MSTR) stock rises as company resumes Bitcoin buying spree

Shares of Strategy MSTR (previously known as MicroStrategy) rose on Monday after the company resumed buying Bitcoin.

The move reversed course just a week after its first cryptocurrency sale since 2022 and provided a boost to a market that has struggled to regain momentum.

The company disclosed in a filing with the US Securities and Exchange Commission that it purchased 1,550 Bitcoin between June 1 and June 7 for approximately $101.3 million.

The acquisition was made at an average price of $65,332 per token.

Strategy shares climbed about 5.4% during Monday's session, while other crypto-related stocks also moved higher.

Coinbase Global gained 5.7%, Robinhood Markets rose 2.7%, and stablecoin issuer Circle Internet Group added 2.5%.

Bitcoin itself recovered after falling below the $60,000 level last week, rising roughly 3% over the past 24 hours to trade around $63,700. Ethereum and Solana also posted gains of more than 3%.

Strategy resumes accumulation after rare Bitcoin sale

The latest purchase comes shortly after Strategy surprised investors by selling 32 Bitcoin between May 26 and May 31, marking its first disposal of the cryptocurrency since late 2022.

The company said the sale generated roughly $2.5 million at an average net price of $77,135 per Bitcoin, with the proceeds earmarked for dividend payments on its STRC preferred stock.

Strategy Executive Chairman Michael Saylor hinted at the latest acquisition over the weekend, posting the company's familiar Bitcoin tracker chart on social media with the message: "A good time to add more dots."

According to the filing, the purchases were funded through at-the-market sales of Strategy's Class A common stock.

The company sold approximately 1.41 million shares for about $181 million last week and still has nearly $26 billion available under the program.

Strategy now holds a total of 845,256 Bitcoin acquired for roughly $64 billion, including fees and expenses.

Based on current market prices, those holdings are valued at approximately $53.5 billion.

Analysts assess impact on Bitcoin market

The company's decision to resume buying comes after last week's sale unsettled parts of the cryptocurrency market.

Thomas Perfumo, chief economist at crypto platform Kraken, has described Strategy as the "single most influential entity in the market."

JPMorgan analysts said the company's recent decision to sell 32 Bitcoin "spooked" markets even if the sale was "symbolic and voluntary," adding that Strategy may need to rebuild its dollar reserves to reassure investors.

Grayscale Head of Research Zach Pandl also noted that Strategy's ability to continue accumulating Bitcoin depends partly on the performance of its equity and preferred stock offerings, suggesting that "other buyers will need to step in for bitcoin's price to establish a sustainable bottom."

Bernstein analysts, however, struck a more optimistic tone, arguing that Strategy's dividend obligations remain well supported.

"MSTR has raised over a billion dollars in a week several times and equity liquidity remains strong," they said.

ETF outflows and market sentiment remain in focus

Despite Monday's rebound, broader sentiment toward Bitcoin remains cautious.

Recent outflows from spot Bitcoin exchange-traded funds have reflected weakening investor demand after the cryptocurrency struggled to sustain gains earlier this year.

Analysts at Ned Davis Research said the withdrawals suggest Bitcoin has struggled to establish support, even as investors continue to seek exposure to risk assets elsewhere.

"It is not as if the market has abandoned risk-on," analysts Pat Tschosik and Philippe Mouls wrote. "It has just abandoned Bitcoin as a preferred risk-on asset."

According to Bitcoin Treasuries data, 198 public companies have now adopted some form of Bitcoin acquisition strategy.

Strategy remains the largest corporate holder by a significant margin, controlling more than 4% of Bitcoin's maximum 21 million token supply.