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This article first appeared on GuruFocus.
Strategy (NASDAQ:MSTR) continued to lean aggressively into Bitcoin (BTC-USD), stepping up purchases for a second consecutive week as prices pulled back. Between Dec. 8 and Dec. 14, the company acquired $980.3 million worth of Bitcoin, its largest weekly purchase since July and the second straight week of adding more than 10,000 coins to its balance sheet, something it had not done since January. The move reinforces Strategy’s positioning as a dedicated digital asset treasury company at a moment when volatility has returned to the crypto market.
The bulk of the latest buying was funded through at-the-market sales of Class A common stock, alongside sales from three of its four classes of perpetual preferred shares. That funding approach has revived concerns among critics who argue repeated equity issuance could be dilutive and may be pressuring the premium the shares trade at versus the firm’s roughly $59 billion Bitcoin holdings. Shares fell about 6.7% to $164.60 in New York trading, while Bitcoin declined around 1.8% to $86,885, leaving the cryptocurrency roughly 30% below its early October peak of just over $126,000.
Attention has also shifted to index dynamics. After speculation about a potential removal, the Nasdaq 100 decided late Friday to keep Strategy in the index following its annual reconstitution, easing fears of near-term forced selling. Separately, the company has urged MSCI to abandon a proposal that could remove digital asset treasury firms whose crypto holdings exceed half of total assets from global equity benchmarks, warning of potentially harmful consequences if adopted. MSCI is expected to announce its decision by Jan. 15, a date that could be closely watched as Strategy’s shares continue to trade at a premium of about 1.1 times enterprise value.