MSTR Stock Jumps 2% as Strategy Extends Bitcoin Buying Pause to Eighth Week

The company instead raised $333.7 million in net proceeds by selling 3,458,866 MSTR shares through its at-the-market program. Strategy directed the proceeds toward preferred-stock dividends, STRC repurchases, and its U.S. dollar reserve rather than adding to its Bitcoin position.

Strategy Keeps Bitcoin Holdings at 840,447 BTC

Strategy’s latest filing shows no Bitcoin activity during the week ended August 16. The company continues to hold 840,447 BTC acquired for $63.36 billion, including fees and expenses, at an average purchase price of $75,385 per Bitcoin.

The pause marks the eighth week without a new Bitcoin purchase after Strategy last added 520 BTC between June 15 and June 21 for $34.9 million. The company later began selling portions of its holdings, including transactions that helped fund preferred dividends and strengthen its dollar reserve.

Strategy has sold 6,948 BTC since May for about $432.5 million. At a Bitcoin price near $63,500, its current holdings are worth roughly $53.4 billion, around $10 billion below their aggregate acquisition cost. That difference represents an unrealized valuation gap and does not become a realized loss unless the Bitcoin is sold.

MSTR Share Sales Raise $333.7 Million

Strategy sold about 3.46 million Class A shares between August 10 and August 16, generating $333.7 million after sales commissions. The company allocated $52.4 million to STRC dividends and another $132.2 million to repurchase 1,388,720 STRC shares.

Another $149.1 million went into Strategy’s U.S. dollar reserve, lifting the balance to $4.80 billion as of August 16. The reserve supports payments on preferred-stock dividends and interest on outstanding debt. Strategy still has $653 million available under its preferred-stock repurchase program and the full $1 billion authorization for MSTR common-stock repurchases.

Bitcoin critic Peter Schiff criticized the latest capital allocation, arguing that Strategy was “sacrificing MSTR shareholders” to support STRC holders. His comments represent his assessment of the company’s financing strategy rather than an established effect on shareholders. Strategy has continued using common-stock issuance as one source of capital for its reserves, dividends, and security repurchases.

MSTR Stock Forecast Remains Bullish on Wall Street

MSTR shares remained higher despite the continued Bitcoin buying pause and additional common-stock issuance. Amid this price recovery, current analyst data tracked by TipRanks shows 14 analysts, with 13 Buy ratings and one Hold. 

Source: TipRanks

Based on the analysts, the average 12-month MSTR stock price target stands at $275.46, with forecasts ranging from $130 to $570. Some of the analysts’ forecasts include $260 from TD Cowen, $212 from Cantor Fitzgerald, $213 from Mizuho, and $130 from Barclays.

However, Strategy’s next weekly disclosure will establish whether the Bitcoin buying pause extends beyond eight weeks or whether the company resumes accumulation after CEO Phong Lee announced last week that Bitcoin accumulation would return in the latter part of the year.