Michael Saylor's Bitcoin holdings have surpassed 632,000. Will Wall Street reward him or punish him?

Key points

Strategy sold over $300 million worth of MSTR common stock to fund the latest BTC acquisition. Over the past few days, the stock price drop has been twice that of BTC.

Michael Saylor announced that Strategy (formerly MicroStrategy) has acquired an additional 3,081 Bitcoin [BTC] for approximately $357 million.

This latest purchase has increased the company's Bitcoin holdings to 632,457 BTC, officially surpassing 3% of the total BTC supply. Notably, at the beginning of August, Saylor hinted that the company might aim to reach between 3% to 7% of the total BTC supply.

Interestingly, most of the recent funds were raised through the sale of MSTR common stock.

According to documents filed by Strategy with the U.S. Securities and Exchange Commission, the company sold 875,301 shares of MSTR stock (worth $310 million) in the past seven days.

MSTR dilution or 'strategic' acquisition

It is noteworthy that using MSTR to purchase BTC aligns with Saylor's new ATM (at the market) guidance.

He recently indicated using MSTR for new BTC bidding, even as the premium (mNAV) drops below 2.5 times, sparking criticism regarding stock dilution.

However, some analysts view this as a strategic move to acquire more BTC through the sale of MSTR stock.

In fact, renowned MSTR analyst Jeff Walton stated that MSTR has met the criteria for inclusion in the S&P 500 index, pointing out its strong liquidity and ranking as the '14th largest publicly traded stock by trading volume.'

"$MSTR is currently the 106th largest company in the U.S. by market capitalization ($97.6 billion). It has been included in the S&P 500 index for the 39th consecutive day. By trading volume, $MSTR is the 14th largest publicly traded stock."

However, it remains unclear when MSTR will be included in the index.

BTC pullback has a greater impact on MSTR

Meanwhile, MSTR has not handled the recent BTC pullback well.

The reason is that when BTC fell from above $124,000 to $110,000, a decline of over 10%, MSTR's sell-off was nearly double that of BTC (20%), dropping from $457 to $325.

Clearly, this is not surprising, as MSTR has consistently provided about double the volatility exposure to BTC due to its large BTC holdings.

However, the stock is below the 200-day simple moving average (SMA), which has been a key level it has defended throughout 2025. Therefore, a further pullback of BTC below $110,000 may put MSTR bulls in jeopardy.