MSTR Stock Soars on $2.1B Bitcoin Buy Plan
MicroStrategy (MSTR) stock experienced a significant rebound following the company's announcement of a $2.1 billion capital raise to further expand its Bitcoin holdings. This surge comes after yesterday's market close saw the stock trading in the red. The recent rally in Bitcoin's price to new all-time highs (ATHs) also positively impacted MSTR, given the strong correlation between the two assets.
MSTR Stock Price Surge
Trading data reveals a 3%+ increase in MSTR stock price, trading above $410 after closing at approximately $402 the previous day. This impressive performance builds on the stock's already strong 40%+ year-to-date (YTD) growth in 2025, outpacing even Bitcoin's gains. The stock is up 170% over the past year, primarily attributed to its Bitcoin acquisition strategy.
MicroStrategy's latest Bitcoin purchase involved acquiring 7,390 BTC for $764.9 million last week, at an average price of $103,498 per Bitcoin. The company's Bitcoin treasury now holds a total of 576,230 BTC, acquired at a total cost of $40.18 billion and an average price of $69,726 per BTC. The previous purchase spurred a rally in MSTR stock above $400.
Increased Bitcoin Acquisition Plans
The recent MSTR stock price rally follows the company's announcement to raise capital for further Bitcoin acquisitions. MicroStrategy plans to issue and sell shares of its 10.00% Series A Perpetual Strife Preferred Stock, aiming to raise up to $2.1 billion. The company intends to release these shares strategically over an extended period, considering market conditions.
MicroStrategy explicitly stated that the net proceeds will be used for "general corporate purposes, including the acquisition of bitcoin, and for working capital."
Bitcoin's Impact on MSTR Stock
The strong positive correlation between MSTR stock and Bitcoin's price is a key factor in the recent price movements. Bitcoin recently hit a new all-time high of $111,800. This surge is expected to positively influence MSTR's stock price given its significant Bitcoin holdings.
However, crypto analyst Ali Martinez cautions that a price correction might precede any sustained upward trend, citing a sell signal on MSTR's weekly chart.
Disclaimer: This analysis reflects market conditions at the time of writing and includes the author's personal opinion. Conduct thorough research before making any investment decisions. The author and Codeum are not responsible for personal financial losses.