MSTR Stock Jumps! Bitcoin Buying Spree? Wait, What?

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Oh, look! The MSTR stock price jumped by nearly 4% on Monday, because nothing says “I’ve got this together” like a company that’s basically a crypto gambling machine 🎰. Bitcoin’s comeback? More like a “I’m back, baby” moment. And Strategy? Oh, they’re just accelerating their accumulation and shareholder dilution. Because who needs stability when you can have a rollercoaster? 🎢💸

  • MSTR stock price rebounded as Bitcoin moved above $92,000. (Because nothing says “success” like a cryptocurrency that’s still 70% below its peak! 📉💸)
  • The company continued its Bitcoin accumulation last week. (Because who needs a plan when you can just buy more of what’s already crashing? 🤯)
  • Technical analysis suggests that the stock has more downside. (Because why stop now? Let’s keep the party going! 🥁)

Strategy, formerly known as MicroStrategy, was trading at $163.25, up modestly from this year’s low of $155. It remains ~70% below its all-time high. (Because who needs a good day when you can have a modest increase? 😂)

In a statement, the company said that it acquired 1,287 Bitcoins (BTC), bringing the total holdings to 673,783. Its current holdings are valued at over $62 billion, higher than its market capitalization of over $45 billion. It is also higher than the enterprise value of $59 billion. (Oh, so the company’s crypto stash is worth more than the company itself? That’s a real confidence booster! 💸)

Strategy bought these coins after selling common shares worth over $1.9 billion. It still has over $11.5 billion in outstanding shares in its at-the-money reserves that it can sell. (Because nothing says “trust us” like selling more shares to buy more crypto! 📈📉)

The company also increased its cash reserves by $62 million. It has been accumulating cash now that the mNAV ratio has dropped below 1. As a result, it hopes that this cash will be used to pay dividends and service its debt. (Because who doesn’t want to hear “we’re paying dividends” when the stock is basically a hot potato? 🍵)

MSTR stock rose as Bitcoin continued its recent rally as it reached a high of $92,500, up by 15% from its lowest point in December. Also, the Crypto Fear and Greed Index has moved out of the fear zone, while futures open interest rose to $140 billion. (Because nothing says “I’m calm” like a market that’s just bounced back from a total meltdown! 🤯)

Still, Strategy stock faces major risks. The most notable risk is that the company continues to dilute its shareholders, raising the outstanding shares to over 300 million shares. It has jumped from the 2022 low of below 100 million. (Because who needs a strong shareholder base when you can just keep printing more shares? 📄)

The other risk is that, as shown below, Bitcoin price has formed a bearish flag pattern. It has remained below the 100-day moving average and the Supertrend indicator, meaning that the coin will continue falling. (Oh no! A bearish flag? That’s like a warning sign with a neon “DANGER” and a glittery bow! ⚠️)

MSTR stock price technicals point to more downside

Strategy also faces risky technicals. It has remained below the important support level at $230.38, its lowest level in March last year. Like Bitcoin, it remains below all moving averages and the Supertrend indicator. (Because who needs a safety net when you can have a free fall? 🌪️)

The stock has remained below the Major S/R pivot point at $250 and all moving averages. Therefore, the stock will likely continue falling as sellers target the key support at $10. (Because who needs a safety net when you can have a free fall? 🌪️)

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2026-01-05 22:08