- Strategy stock (MSTR) has risen slightly amid Bitcoin‘s recovery to $90,000.
- Strategy claims its Bitcoin holdings sufficiently cover its convertible debt even if Bitcoin falls to $74,000.
- Former CEO Michael Saylor anticipates Bitcoin reaching $150,000 by 2025 and highlights increasing Bitcoin-backed credit.
- Strategy owns around 649,870 Bitcoin, valued at about $56 billion, exceeding its market value.
- Analysts note growing Bitcoin whale activity, which may signal renewed demand and support Bitcoin’s price rise.
Shares of Michael Saylor’s company, Strategy (stock symbol MSTR), have shown some recovery on Wednesday as Bitcoin (BTC) climbs back to $90,000. Bitcoin recently experienced a sharp decline influenced by factors such as Federal Reserve volatility and trade tariffs. The cryptocurrency now appears to be rebounding, potentially benefiting MSTR stock, which has fallen more than 39% over the past month to around $176.
During the recent price drop, Strategy aimed to reassure shareholders regarding its exposure to Bitcoin risk. The company stated that its Bitcoin assets would cover its convertible debt nearly six times even if the price dropped to an average cost basis of $74,000. Given Bitcoin’s current price near $90,000, this risk scenario is less immediate.
Despite the recent volatility, investors and Strategy’s founder, Michael Saylor, expect Bitcoin to recover. In an October interview, Saylor projected Bitcoin’s price could reach $150,000 by the end of 2025. He also pointed to rising levels of Bitcoin-backed credit, citing data that showed consistent weekly increases from mid-September through late November.
Strategy currently holds approximately 649,870 Bitcoin, which at recent prices is worth about $56 billion. However, due to the decline in MSTR stock, the company’s market value is now less than its Bitcoin holdings. Despite this, Saylor has affirmed that the company will not sell any of its Bitcoin assets.
Bitcoin market activity shows signs of picking up, according to analysts at Bitfinex, who observed increased demand despite prices remaining below early-November levels. Notably, the number of wallets holding over 100 BTC rose by 0.47% since November 11, based on Santiment research. This increase in large Bitcoin holders, often called whales, could support Bitcoin’s price growth toward $100,000 before year-end.
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