The MSTR price is rising again in tandem with the Bitcoin price as both saw their values move higher on July 2. Strategy’s stock rode a fresh crypto rebound as BTC surged, once again giving more energy to the correlation between the two. However, the question on investors’ lips is whether the company’s equity can keep outrunning the asset it is built to track.
Strategy’s MSTR Stock Tracks Bitcoin Price Rebound
Strategy shares climbed 7% on the daily chart after Bitcoin price reclaimed the $61,000 level, a move that restored some confidence to crypto traders after a weak start to the quarter. CoinMarketCap data shows that Bitcoin (BTC) was trading above $61,000 after comments from Federal Reserve Chair Kevin Warsh helped ease inflation fears. On the other hand, Strategy’s own filings show the company still holds a huge BTC treasury and is leaning further into its “digital credit” model.
As of July 2, MSTR is trading at approximately $99.22, extending its rebound after climbing more than 7% in the previous session as Bitcoin recovered above $61,000. The latest rally follows several weeks of heavy selling pressure that pushed the stock close to its 52-week low before buyers returned.
Over the last week, the MSTR stock price has recovered approximately 13% after bouncing from the mid-$80 range. Despite the recent rebound, the monthly performance remains weak. MSTR is still down roughly 38% over the last month after investors reacted to Bitcoin's sharp correction, share issuance, and concerns about Strategy's premium to its Bitcoin net asset value. Wall Street has also reduced several price targets, reflecting increased caution over near-term performance.
The yearly picture has been even more challenging. Over the past 12 months, the MSTR stock price has declined by roughly 75%, making it one of the biggest losers among major technology and crypto-related stocks. The decline largely mirrors Bitcoin's retreat from its $126,000 record highs while also reflecting investor concerns about Strategy's financing model and repeated capital raises used to purchase additional Bitcoin.
Historically, MSTR reached an all-time high of approximately $457.22 (split-adjusted) during the peak of the Bitcoin bull market. At its current price near $99, the stock is sitting approximately 78% below its all-time high record, highlighting both the severity of the recent correction and the significant upside that bulls believe could return if Bitcoin enters another sustained rally.
As of June 28, Strategy said it held 847,363 BTC at an average cost of about $75,651 per coin, with a USD reserve of $2.55 billion tied to dividends and interest obligations, according to an 8-K filed with the SEC. This setup matters because MSTR is not just a Bitcoin proxy; it actually acts as a leveraged corporate structure with stock-market risk layered on top of crypto risk. So, when the Bitcoin price moves higher, MSTR often amplifies the move. When BTC pulls back, Strategy’s equity can sell off much harder. This correlation is why the stock can rally even when analysts question its valuation, debt load, and ability to fund preferred dividends without eventually selling some BTC.
MSTR And The BTC Leverage Debate
The latest gain in the MSTR stock price came alongside renewed optimism in BTC, but the stock remains tied to a highly sensitive capital structure. Strategy disclosed on June 29 that it had adopted a “Digital Credit Capital Framework” and a BTC monetization program, which would allow the company to sell Bitcoin under specific circumstances, including funding dividends or bolstering reserves. That is a major shift for a company that built its identity on accumulating BTC rather than touching it.
This move suggests that Strategy’s BTC exposure is no longer a simple Bitcoin treasury story. The company has issued equity, preferred stock, and debt-like instruments to support its holdings. That can boost upside in a strong Bitcoin price environment, but it also creates a refinancing and dividend burden that pure BTC holders do not face. In other words, MSTR can outperform BTC in a short burst, but it can also underperform badly if sentiment turns.
The market has already been debating that trade-off. On June 28, founder Michael Saylor teased more BTC buying even as MSTR slipped and investors worried about dividend coverage. However, the company seems to be focused on selling BTC as its latest report suggests the company could sell up to $2.5 billion in Bitcoin, as Wealthier Today reported.
Nevertheless, Strategy’s Bitcoin holdings remain substantial. CoinGecko’s data shows 847,363 BTC with an average price of $75,651. After consistently buying Bitcoin for close to six years, the company has so far spent more than $64 billion on the cryptocurrency, funded by issuing and selling MSTR shares to investors.
Even though the Bitcoin price surged above $61,000, Strategy is still underwater on its BTC holdings. It is currently sitting on $12 billion in unrealized losses, raising questions as to whether the Bitcoin bet has been a misguided idea. However, Saylor remains committed to the cause, suggesting that the company may continue buying the cryptocurrency.
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