Strategy Shares Fall After Bitcoin Giant Reveals $100 Million BTC Buy

Core Insights - Strategy (MSTR) has acquired 850 Bitcoin for $100 million at an average price of $117,344, leading to a 1.4% decline in its shares [1] - The stock has underperformed Bitcoin, decreasing approximately 5.2% over the last month compared to Bitcoin's 1.6% decline [1] - Analysts at TD Cowen maintain a buy rating on MSTR, citing the stock as undervalued relative to Bitcoin and potential catalysts for growth [2][3] Financial Overview - The recent Bitcoin purchase was financed using $19 million from STRF preferred stock proceeds and over $80 million from its existing $21 billion common stock offering [2] - Strategy currently holds a Bitcoin treasury of 635,893 BTC, valued at around $72.25 billion, significantly larger than the next largest treasury held by MARA [3] Fundraising Strategy - The firm operates five distinct at-the-market (ATM) offerings to raise funds for Bitcoin purchases, with approximately $16 billion remaining for issuance in its common stock offering and over $30 billion available across its preferred stock offerings [4] - Each stock offering was designed to provide Bitcoin exposure to investors with varying risk profiles [5]