Strategy’s stock fell to a fresh 15-month low as it used more share sales to buy bitcoin. The software company MSTR, which bills itself as the largest corporate holder of bitcoin BTCUSD, disclosed Monday that from Dec. 22 through Dec. 28, it sold 663,450 shares of its common stock for net proceeds of $108.8 million. Shares slumped to their lowest close in more than a year on Monday, as investors were hit with a combination of falling bitcoin prices and another dilutive share sale.
Strategy’s stock dropped to a fresh 15-month low after it conducted another round of share sales to fund Bitcoin purchases. The decline coincided with a drop in bitcoin prices, weighing on Strategy’s stock and raising dilution concerns.
Strategy bills itself as the largest corporate holder of bitcoin, and the report highlights investor sensitivity to its bitcoin strategy. The sale follows a pattern of using equity issuance to finance cryptocurrency holdings, a move that can pressure the stock during crypto price swings. Despite the funding, Strategy’s stock continued to slide, underscoring ongoing volatility in the bitcoin market.
Investors will weigh the dilution risk against the potential upside from Strategy’s bitcoin exposure. Ongoing funding through share sales could continue to be a factor for the stock as bitcoin volatility persists.
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