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MicroStrategy doubles down: 1,142 BTC added during market dip
MicroStrategy continued its dollar-cost averaging strategy last week, acquiring 1,142 Bitcoin as BTC slid to levels not seen since 2024. The purchase — executed at an average price near $78,815 per coin — raises the firm's total crypto treasury to 714,644 BTC, a holding now valued at more than $49 billion. The move underscores MicroStrategy CEO Michael Saylor's persistent conviction in Bitcoin as a long-term store of value, even while the company records sizable unrealized losses amid the current downtrend.
Cost basis and unrealized losses
Data from Bitcoin Treasuries shows MicroStrategy's blended cost per BTC sits around $76,050. With spot Bitcoin trading roughly near $69,000, the firm has incurred nearly a 10% unrealized loss on its cumulative holdings — roughly a $5 billion paper loss. Those unrealized losses have contributed to a much larger ledger hit: the company reported an operating loss of over $17.4 billion last quarter and a net loss approaching $12.4 billion, figures that reflect mark-to-market pressure when BTC prices decline.
Share dilution and capital structure
To fund its ongoing accumulation program, MicroStrategy continues to use equity and preferred instruments. The company retains more than $7.9 billion of authorized common shares tailored for Bitcoin purchases and holds over $20 billion in STRK preferred shares available. This financing approach has expanded total outstanding shares dramatically — from roughly 77 million in 2021 to in excess of 300 million today — a dynamic investors should weigh alongside the company’s growing crypto treasury.
How the market is reacting
Despite the headline losses, Wall Street sentiment toward MSTR has grown increasingly optimistic. Several brokerages have issued bullish targets, betting that a sustained Bitcoin rebound would lift MicroStrategy’s stock. Cantor Fitzgerald kept an overweight rating with a $192 target, BTIG set $250, and other firms including Canaccord Genuity, Mizuho and Truist have targets ranging from $185 up to $403. MarketBeat’s compilation puts the consensus target at about $347 — roughly 176% above current trading levels — highlighting analysts’ view that MSTR’s equity is tightly correlated to future BTC performance.
What traders and investors should watch
For crypto investors and institutional traders, the key drivers for MSTR remain clear: the trajectory of Bitcoin price action and MicroStrategy’s continued use of equity financing to acquire BTC. A decisive BTC rally would likely trigger meaningful upside in MSTR shares, as seen during recent rebounds when the stock jumped sharply after Bitcoin moved from $60,000 to above $70,000. Conversely, prolonged BTC weakness could maintain pressure on the company’s financials and shareholder dilution concerns.
MicroStrategy’s latest accumulation reinforces a growing theme in the crypto market: executives and institutional holders are increasingly treating Bitcoin as a primary treasury asset. That conviction keeps MSTR squarely in the crosshairs of both crypto-focused investors and traditional Wall Street analysts tracking Bitcoin exposure and corporate balance-sheet strategies.
Source: crypto
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