Stock price of Strategy (MSTR) falls in after-hours trading following SEC filing disclosing new $108.8 million investment in bitcoin

Technology company Strategy Inc. (MSTR) saw a 2.2% decrease in its stock price after hours trading following the disclosure of a fresh $108.8 million bitcoin purchase funded by the sale of new shares, as per an SEC filing. This move is significant as Strategy has established itself as a “Bitcoin Treasury Company,” aligning its equity closely with the volatility of bitcoin compared to other U.S. software stocks. Investors are increasingly concerned about dilution, where the issuance of new shares reduces existing shareholders’ ownership stakes, as Strategy continues to access capital markets to build its bitcoin reserves. Bitcoin was trading at $87,248, inching down by 0.3%.

According to the Form 8-K filing, Strategy acquired 1,229 bitcoins between December 22 and December 28 for $108.8 million, paying an average price of $88,568 per coin, including fees. The company’s total bitcoin holdings now stand at 672,497, purchased for $50.44 billion at an average cost of $74,997. Additionally, the filing revealed that Strategy sold 663,450 class A common shares during the same period, raising $108.8 million in net proceeds. There is still approximately $11.7 billion available for issuance and sale under the company’s common-stock at-the-market program. This program allows Strategy to sell stock gradually into the open market over time, as opposed to in a single large offering. No sales were reported under the at-the-market programs for four series of preferred shares during the week, which typically provide dividends and hold a higher rank than common stock in the company’s capital structure.

The company’s executive chairman, Michael Saylor, hinted at the update before the filing, sharing a cryptic message “Back to Orange” on X, alluding to the company’s bitcoin purchase chart. Stocks tied to cryptocurrencies, such as Coinbase, Marathon Digital, and Riot Platforms, also experienced declines during late trading on Monday.

Strategy’s shares fluctuated between $155.00 and $162.85 during the session, highlighting the stock’s tendency to move more than the underlying token. Traders commonly refer to $155 as a near-term “support” level, indicating a price point where buying interest typically emerges following a decline. Investors are closely monitoring Strategy’s capital-raising efforts to sustain its accumulation of bitcoin. The company utilizes proceeds from equity and debt financing, along with operating cash flows, to build its bitcoin reserves.

Looking ahead to early 2026, investors are paying attention to index-related news, particularly MSCI’s forthcoming decision by January 15 on excluding companies from certain benchmarks if digital assets represent more than 50% of their total assets. This review has put firms with significant digital asset holdings, like Strategy, under scrutiny. In addition to bitcoin’s future direction, investors are closely watching Strategy’s stock issuance patterns to fund its ongoing bitcoin purchases. Weekly filings have become a routine checkpoint for investors to track whether Strategy is buying, pausing, or increasing capital raising efforts.