Strategy shares (MSTR) continue to surge strongly, closing the trading session on Wednesday with the highest market capitalization in history: $128.4 billion, thanks to Bitcoin's meteoric rise to nearly $120,000.
Specifically, MSTR shares rose by 3.07%, reaching $455.90, bringing the total increase over the past 3 months to 46% and 174% over the past year. Since implementing the large-scale Bitcoin accumulation strategy, MSTR's overall investment performance has increased by 3,588%, according to the latest data.
The world's largest Bitcoin-holding company
As of July 14, Strategy holds 601,550 BTC, valued at over $72.1 billion, equivalent to 2.86% of the total Bitcoin supply globally. The average price the company has paid for each Bitcoin is $71,270, meaning it is still enjoying significant profits as Bitcoin trades around $119,887 at the time of data release.
The company's current debt level is $8.22 billion, equivalent to 11% of the nominal value of the Bitcoin holdings, indicating that financial leverage is well managed. In addition, Strategy has an additional $3.52 billion in preferred equity, accounting for about 5% of Bitcoin's NAV.
The driving force behind: Bitcoin and institutional investors
The increase of MSTR is tied to the rise of the cryptocurrency market, particularly Bitcoin, with a 24-hour trading volume reaching $47.8 billion and a market capitalization holding steady at $2.4 trillion — the highest in the cryptocurrency world.
Notably, Vanguard Group — one of the largest fund management organizations in the world — has been revealed as the largest shareholder of Strategy, despite previously calling Bitcoin an 'immature asset.' This shift reflects the trend of traditional financial institutions increasingly accepting Bitcoin as a strategic store of value.
High volatility, but strong confidence
Although the implied volatility is currently 57%, and the historical volatility over 1 year is 94%, investors still view MSTR as the top 'proxy' for Bitcoin in the U.S. stock market. Trading indicators also show positive sentiment: Open interest (OI) reached $112.25 billion, indicating that significant capital is still flowing into derivative contracts related to this stock.
With the strategy of radically 'Bitcoinizing' the business, Michael Saylor has turned Strategy into one of the most attractive assets on Wall Street. As Bitcoin continues to grow and attract global attention, MSTR shares are in a prime position to benefit from a new cryptocurrency bull cycle.
