MSTR Stock Jumps 2% Despite Bitcoin Strategy Pause – What’s Brewing?

MicroStrategy hits pause on Bitcoin buys—but Wall Street shrugs as shares climb.

No new BTC? No problem. Michael Saylor’s proxy Bitcoin play keeps winning over traders, even as the corporate treasury strategy takes a breather. The stock’s 2% gain suggests investors still see MSTR as the cleanest dirty shirt in the crypto-correlated laundry basket.

Meanwhile, crypto purists scoff: 'Imagine paying a premium for Bitcoin exposure... without the Bitcoin.'

TLDR

• Strategy did not purchase any Bitcoin last week, ending its recent buying streak.
• The company’s total Bitcoin holdings remain at 607,770 BTC, worth $43.61 billion.
• MSTR stock rose over 2 percent in premarket trading, reaching around $417.
• A recent post by Michael Saylor referenced Strategy’s first Bitcoin buy but did not indicate a new purchase.
• Strategy plans to raise $2.5 billion through a preferred stock offering to support future acquisitions.

Strategy did not add to its Bitcoin holdings last week, breaking its recent streak of weekly acquisitions. The company filed a Form 8-K with the SEC, confirming zero Bitcoin purchases during the period. Despite this pause, Strategy’s stock rose over 2% in premarket trading, following a strong prior-week close.

Although the company held off on adding Bitcoin, it still maintains a significant reserve of 607,770 BTC. This portfolio remains valued at $43.61 billion, with an average acquisition cost of $71,756 per coin. Market watchers anticipated a purchase after a suggestive post from Executive Chairman Michael Saylor.

That post referenced Strategy’s initial $250 million bitcoin purchase in 2020, which involved acquiring 21,454 BTC at $11,654 each. However, contrary to public speculation, this post was not a signal of a new acquisition. The company continues to be seen as a leading corporate holder of Bitcoin.

Strategy Maintains Holdings Despite Previous Hints

Michael Saylor’s social media activity raised expectations of another Bitcoin acquisition last week. Instead, the company maintained its current holdings without any additions. This decision follows two consecutive weeks of Bitcoin buys earlier in July.

Strategy’s current holdings remain unchanged at 607,770 BTC, keeping its crypto portfolio intact ahead of its earnings report. The company’s investment has already delivered a $14 billion unrealized gain for the second quarter. This gain was fueled by Bitcoin’s May rally, when the price hit $111,900.

The halt comes just ahead of a major capital raise through preferred stock. Strategy expects to generate $2.5 billion from the Stretch offering. This capital is widely expected to support future Bitcoin purchases once completed.

MSTR Stock Gains Despite No New Bitcoin Buy

Even without a new Bitcoin acquisition, Strategy’s MSTR stock advanced in early trading. The stock increased over 2%, reaching around $417 in the premarket session. This rise follows a previous weekly close of $405.

According to TradingView data, the uptick reflects investor confidence ahead of Strategy’s Q2 earnings report on July 31. The company’s decision not to purchase Bitcoin did not impact short-term sentiment. Momentum remains positive, even with last week’s inactivity in Bitcoin markets.