Strategy stock (MSTR) continues to explode strongly, closing Wednesday's trading session with the highest market capitalization in history: 128.4 billion USD, thanks to the skyrocketing increase of Bitcoin to nearly 120,000 USD.
Specifically, MSTR stock rose 3.07%, reaching 455.90 USD, increasing the total level of growth over the past 3 months to 46% and 174% over the past year. Since implementing a large-scale Bitcoin accumulation strategy, MSTR's overall investment performance has increased by 3,588%, according to the latest data.
The largest Bitcoin holder company in the world
As of July 14, Strategy holds 601,550 BTC, worth over 72.1 billion USD, equivalent to 2.86% of the total global Bitcoin supply. The average price the company paid to acquire each Bitcoin is 71,270 USD, which still represents a significant profit as Bitcoin trades around 119,887 USD at the time of data release.
The company's current debt is 8.22 billion USD, equivalent to 11% of the nominal value of the Bitcoin held, indicating that financial leverage is well controlled. Additionally, Strategy has an additional 3.52 billion USD in preferred equity, accounting for about 5% of Bitcoin's NAV.
The driving force behind: Bitcoin and institutional investors
The increase of MSTR is linked to the rise of the cryptocurrency market, especially Bitcoin, with a 24-hour trading volume reaching 47.8 billion USD and a market capitalization holding steady at 2.4 trillion USD — 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 change 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 US stock market. Trading indicators also show positive sentiment: Open interest (OI) reached 112.25 billion USD, indicating that large capital flows are still pouring into derivative contracts related to this stock.
With a 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 stock is in a prime position to benefit from the new cryptocurrency bull cycle.