Strategy Incorporated (MSTR) stock climbed 5% midweek, closing at $387, outperforming Bitcoin (BTC), which rose approximately 1% to around $105,000. This rally was supported by stronger-than-expected U.S. labor market data that lifted overall market sentiment, with the Nasdaq Composite increasing 0.81% and the S&P 500 rising 0.58%. Key to MSTR's rise was the company’s announcement of a new preferred stock issue, Stride (STRD), aimed at raising capital specifically for further Bitcoin purchases.
STRD shares come with non-cumulative, non-mandatory dividends and are junior to existing preferred shares (STRF), allowing Strategy to expand its capital options without diluting current shareholders. Analysts have described this move as "history in the making," offering Strategy a significant "war chest" to accelerate its Bitcoin acquisition strategy.
As of June 5, Strategy holds approximately 580,955 BTC valued near $60 billion, representing around $20 billion in unrealized gains since the acquisition cost was about $40 billion. In 2025 alone, the company purchased 133,485 Bitcoin, now controlling close to 3% of Bitcoin’s circulating supply.
MSTR stock has gained 28% year-to-date in Q2 2025, surpassing Bitcoin’s 22% gain, due in part to the firm's leveraged approach of using debt and equity to amplify Bitcoin exposure. Nonetheless, sensitivity to Bitcoin price fluctuations remains high, as reflected by a 3% drop to $376 following a brief Bitcoin price dip below $105,000.
Market analysts are cautiously optimistic. While a top Asian investor recently upgraded MSTR from Strong Sell to Hold, citing reduced risk due to Bitcoin’s renewed strength, Wall Street maintains a Strong Buy consensus, with an average target price of $524.92, indicating 39% upside. However, potential macroeconomic headwinds, including U.S.-China tariff talks and U.S. debt ceiling debates, could cause volatility in Q3, affecting both Bitcoin and MSTR stock.
The outlook for MSTR stock hinges on two main factors: Bitcoin’s price trajectory and the successful execution of its innovative capital strategy via preferred stock offerings. If Bitcoin sustains levels above $105,000, MSTR may continue its upward momentum; conversely, declines in Bitcoin could disproportionately impact the stock given its leveraged nature.