Strategy's Stock Falls To Fresh Lows After Using More Share Sales To Buy Bitcoin

Shares of Strategy slumped to their lowest close in more than a year on Monday, as investors were hit with a combination of falling bitcoin prices and another dilutive sale of stock.

The software company (MSTR), which bills itself as the largest corporate holder of bitcoin (BTCUSD), disclosed Monday that from Dec. 22 through Dec. 28, it sold 663,450 shares of its common stock for net proceeds of $108.8 million.

So far in December, the company, formerly known as MicroStrategy, has sold a total of 15.1 million common shares in December to raise $2.67 billion, which represents 6% of the company's market capitalization of $44.65 billion.

Investors aren't always happy when a company sells stock to the public because it increases the number of shares outstanding, which in turn reduces the percentage of the company that current shareholders own. Investors have given Strategy a bit of a break because the company has used that money to buy bitcoin, but that could be changing.

When bitcoin prices were trending higher, investors were happy because Strategy's stock was also rising. But as bitcoin has fallen recently, Strategy shares have declined faster.

On Monday, Strategy's stock fell 2.2% to $155.39, its lowest closing price since Sept. 25, 2024. Meanwhile, bitcoin prices slipped 0.7% and were trading 2.4% above their Nov. 21 level, which at the time was a seven-month low.

From Dec. 22 through Dec. 28, the company spent all the proceeds from its share sale that week to buy 1,229 bitcoins, at an average price of $88,568 each. The company now owns a total of 672,497 bitcoins, which were purchased at an average price of $74,997 each.

The value of the company's bitcoin reserves as of Monday had dropped to $58.84 billion, the lowest level since May 12, and down 21.3% from a peak of $74.74 billion on Oct. 13.

Since bitcoin's price peaked on Oct. 6, the cryptocurrency has fallen about 30%, according to FactSet data, while Strategy's stock has tumbled 56.8%. So far in 2025, bitcoin has lost 6.6% while Strategy shares have shed 46.4%.