Michael Saylor’s Strategy continued buying Bitcoin last week, even as prices fell to their lowest levels since 2024. The move shows the company’s long-term conviction despite growing paper losses.
In a statement, Saylor said Strategy bought 1,142 Bitcoin at an average price of $78,815. This purchase raised its total holdings to 714,644 Bitcoin, valued at more than $49 billion at current market prices.
Data from Bitcoin Treasuries shows Strategy’s average cost per Bitcoin is about $76,052. With Bitcoin trading near $69,000, the company is sitting on an unrealized loss of nearly 10%. Total unrealized losses are estimated at around $5 billion.
The company’s financial results have also taken a hit. Strategy reported an operating loss of over $17.4 billion as Bitcoin prices declined. Its net loss rose to $12.4 billion, and losses could continue if Bitcoin remains weak.
Strategy has also increased shareholder dilution to fund its Bitcoin strategy. The firm still has about $7.9 billion in authorized common shares available for issuance. It also has more than $20 billion in STRK preferred shares it can use.
As a result, total outstanding shares have climbed to over 300 million. This is a sharp increase from about 77 million shares in 2021, raising concerns among some investors.
Despite these risks, Wall Street analysts remain optimistic about MSTR stock. Cantor Fitzgerald has an overweight rating with a $192 target. BTIG sees $250, while Canaccord Genuity, Mizuho, and Truist Financial have targets of $185, $403, and $268.
According to MarketBeat data, the average analyst price target is $347, about 176% above current levels. Analysts say MSTR’s performance will largely depend on a Bitcoin rebound, as seen recently when the stock jumped nearly 30% during BTC’s move above $70,000.
