Strategy Inc. (NASDAQ: MSTR) shares declined sharply as Bitcoin retreated from recent highs, renewing selling pressure on the cryptocurrency-focused company's stock. MSTR closed October 8 at $151.47, down 1.24% for the day and nearly 11% below its October 2 intraday high of $170.17.
The selloff followed Bitcoin's failure to sustain gains near $87,000. The cryptocurrency fell below $84,000 on October 7 and closed near $81,700 on October 8, according to market data. Bitcoin had reached roughly $87,200 on October 2. Selling intensified as leveraged positions closed across crypto exchanges, with reported Bitcoin liquidations exceeding $166 million on October 7.
Strategy Expands Holdings Despite Downturn
Despite the market decline, Strategy continued its Bitcoin accumulation strategy. The company reported purchasing 334 Bitcoin for $28.7 million between October 1 and October 4, at an average price of $85,838.80 including fees. The purchase brought total reserves to 848,000 Bitcoin, representing more than 4% of Bitcoin's fixed supply.
Strategy's Bitcoin holdings have cost $63.97 billion overall, averaging $75,440.70 per coin. To finance the latest purchase, the company raised $15.7 million through share sales and used $13 million in cash, while also repurchasing 740,634 preferred shares for $73.7 million.
Stock Loses Premium to Bitcoin Holdings
MSTR stock's valuation relative to its Bitcoin reserves weakened during the downturn. The company's market-cap net asset value ratio reached 0.98 on October 8, indicating a roughly 2% discount to its Bitcoin holdings, down from approximately 1.2 during September's rally.
Strategy shares have demonstrated higher volatility than Bitcoin itself. Data through October 8 showed a 30-day Bitcoin correlation of 0.88 and a beta of 2.28, reflecting stronger daily price movements compared to the broader market and Bitcoin.
Key Price Levels in Focus
For Bitcoin, traders are monitoring $80,000 as nearby support and $86,500 to $87,200 as resistance levels. For MSTR stock, the recent low of $147.37 marks a key support level, while $168 to $170 covers recent resistance. Further Bitcoin price movements are expected to influence both Strategy's share price and the market value of its holdings.
