$Strategy(MSTR.US)
Context: The recent gains was mainly driven by capital inflows returning to US spot Bitcoin ETFs and short covering, while Strategy's continued accumulation of BTC also boosted market sentiment for MSTR. Strategy disclosed on September 21 that between September 14 and September 20, the company spent $75.7 million to purchase 950 BTC at an average purchase price of approximately $79,670. As of September 20, the company's holdings increased to 846,000 BTC, with a cumulative investment of $63.8 billion and an overall average purchase cost of about $75,416. Based on a static calculation at a BTC price of $85,500, the market value of Strategy's holdings is approximately $72.33 billion, which is about $8.53 billion above its cumulative purchase cost.
My Trade: Finally positive after a long period of Bitcoin drawdown, with Strategy even selling some of its Bitcoin holdings. I am now targeting a $190 price target to take profit.
Takeaway: MSTR is not a simple reflection of BTC prices. The company raises capital through common stock, preferred stock, and debt instruments, and its stock price is also affected by financing costs, equity dilution, and changes in its premium relative to Bitcoin's net asset value. When BTC rises, MSTR typically exhibits higher price elasticity; when BTC falls or its NAV premium shrinks, the drawdown may also be larger. @Captain's Treasure
