Strategy (MSTR) Stock Faces Fresh Test After Bitcoin Price Selloff

TLDR

Table of Contents

MSTR stock closed at $151.47 on October 8, nearly 11% below its October 2 intraday high.
Bitcoin retreated from $87,000 toward $81,000, adding selling pressure to crypto-linked stocks.
Strategy purchased 334 BTC for $28.7 million, raising its total holdings to 848,000 BTC.
Strategy’s market-cap Bitcoin valuation ratio fell to 0.98, indicating a roughly 2% discount to its Bitcoin holdings.
Investors are watching MSTR stock support near $147 and Bitcoin’s $80,000 price level.

Strategy Inc. (NASDAQ: MSTR) shares fell as Bitcoin retreated from recent highs, putting MSTR stock under renewed selling pressure. The stock closed October 8 at $151.47, down 1.24%, after a two-day decline. Strategy was formerly known as MicroStrategy.

Strategy Inc, MSTR

MSTR Stock Erases Earlier Gains

Strategy shares traded between $147.37 and $153.63 Thursday, with about 23.7 million shares changing hands. The closing price stood nearly 11% below the October 2 intraday high of $170.17. Shares also reached $168.73 on October 6.

The retreat followed Bitcoin’s failure to hold gains near $87,000. The cryptocurrency fell below $84,000 on October 7 and closed near $81,700 Thursday, according to market data. Bitcoin had reached roughly $87,200 on October 2.

Selling intensified as leveraged positions closed across crypto exchanges. Reported Bitcoin liquidations exceeded $166 million on October 7. Recent coverage tracked Bitcoin’s decline toward $81,000 following rejection near $86,500. Bitcoin briefly approached $80,400 early Friday before recovering.

Strategy Expands Bitcoin Holdings

Strategy reported buying 334 Bitcoin for $28.7 million between October 1 and October 4. Its October 5 filing showed an average purchase price of $85,838.80, including fees. The purchase came amid renewed buying during September.

The purchase raised total reserves to 848,000 Bitcoin. Strategy said its holdings cost $63.97 billion overall, averaging $75,440.70 per coin. That represents more than 4% of Bitcoin’s fixed supply. The company also estimated a $20.91 billion third-quarter digital asset gain.

To finance Strategy’s latest Bitcoin purchase, the company raised $15.7 million through share sales and used $13 million in cash. It also repurchased 740,634 preferred shares for $73.7 million.

Strategy Shares Lose Bitcoin Premium

MSTR stock also lost ground against the value of Strategy’s Bitcoin reserves. Its market-cap net asset value ratio reached 0.98 on October 8, according to BTCorMSTR, compared with roughly 1.2 during September’s rally.

The stock’s recent price swings have exceeded Bitcoin’s. Data through October 8 placed its 30-day Bitcoin correlation at 0.88 and its beta at 2.28, showing stronger daily movements.

Key Prices Investors Are Watching

For Bitcoin, traders are tracking $80,000 as nearby support and $86,500 to $87,200 as resistance. A separate Bitcoin support analysis identified lower levels if the cryptocurrency fails to recover.

For MSTR stock, $147.37 marks Thursday’s low, while $168 to $170 covers recent highs. Further Bitcoin price changes could influence both Strategy’s share price and the market value of its holdings.

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