Key Highlights
- Strategy shares rose 16.71% over the past month to around $155.16 on September 30.
- Bitcoin gained about 9.56% over the same rolling one-month period.
- MSTR outperformed BTC by roughly 7 percentage points, showing the stock’s higher sensitivity to Bitcoin price moves.
Strategy Inc. (MSTR) has outperformed Bitcoin over the past month, with the Bitcoin treasury company’s shares gaining nearly twice as much as the cryptocurrency it holds on its balance sheet.
MSTR was trading around $155.16 on September 30, up 16.71% over the past month, according to Google Finance data. Bitcoin, meanwhile, had gained about 9.56% over the same rolling one-month period based on the market data from Coingecko.
That puts MSTR roughly 7.15 percentage points ahead of Bitcoin over the period, with the stock delivering about 1.75 times BTC’s percentage gain.
The move comes as Bitcoin heads toward the end of September in positive territory, BTC was up more than 6% during the calendar month, despite pressure from rising global bond yields and tighter financial conditions.
Bitcoin recently climbed as high as around $87,400 before retreating toward the $83,000 area on September 30. The cryptocurrency has nevertheless remained higher for the month and is on track for a third consecutive monthly gain.
Why MSTR is moving faster than Bitcoin
Strategy has become one of the most closely watched publicly traded proxies for Bitcoin because of the size of its BTC holdings.
As Bitcoin rises, the value of Strategy’s treasury also increases, which can result in larger percentage moves in MSTR shares. The effect can be amplified by the company’s use of equity issuance, debt and preferred securities to finance Bitcoin purchases.
That leverage works in both directions. MSTR can outperform Bitcoin during strong BTC rallies but can also fall more sharply when Bitcoin declines or when investors become concerned about dilution, financing costs or the premium attached to Strategy’s Bitcoin holdings.
The difference has again become visible during September. While Bitcoin posted a solid monthly advance, Strategy shares recorded a considerably stronger move.
Bitcoin’s latest rally has also taken place against a volatile macro backdrop. Rising Treasury yields pressured risk assets earlier in the month, while softer U.S. inflation data on September 30 helped pull yields and the dollar lower.
Strategy resumed Bitcoin buying in September
The stock’s rebound has also coincided with fresh Bitcoin purchases by Strategy.
According to SEC filings, the company purchased 950 BTC for $75.7 million between September 14 and September 20 at an average price of $79,670 per Bitcoin. That purchase increased its holdings to 846,000 BTC.
Strategy followed that purchase with another 1,665 BTC acquisition between September 21 and September 27. The company spent approximately $142.7 million at an average price of $85,681 per Bitcoin.
The latest purchase increased Strategy’s holdings to 847,666 BTC, acquired for an aggregate $63.95 billion at an average purchase price of about $75,437 per Bitcoin.
Strategy also disclosed that $142.7 million in proceeds from MSTR share sales were used to fund the latest Bitcoin purchases, while another $103.5 million was used for repurchases of its STRC preferred stock.
For investors tracking Bitcoin-linked equities, the September performance again shows how MSTR can magnify movements in the underlying cryptocurrency. With Strategy holding more than 847,000 BTC, changes in Bitcoin’s price remain closely tied to the market value investors assign to the company.
Also Read: Bitcoin Price Breaks $85K as Softer U.S. PCE Inflation Eases Rate-Hike Fears
