Strategy Sells Shares to Buy Bitcoin. What This Means for MSTR Stock.

Strategy (MSTR) could not have timed it better. Just as news poured in that a deal had been struck to end the war in Iran, the company revealed through a filing that it had bought Bitcoin (BTCUSD) worth about $100 million. The transactions were carried out between June 8 and June 14, wherein Strategy sold about 1.73 million shares of MSTR stock to buy 1,587 BTC.

The world's largest Bitcoin treasury company now owns 846,842 of the world's largest cryptocurrency with an average purchase price of $75,656 each and a total value of $64.07 billion. Bitcoin is trading below the average purchase price currently at about $62,600, with the crypto down by 40% over the past year.

About Strategy

Founded in 1989 as a business intelligence company selling software, Michael Saylor-led Strategy can be said to have one of the more successful pivots on Wall Street. Since 2020, the company formerly known as MicroStrategy has transformed into what management calls the world's first "Bitcoin Treasury Company." It is now the biggest institutional holder of BTC in the world, with its software business still running alongside it, albeit at a much smaller scale.

Valued at a market capitalization of about $40.8 billion, MSTR stock is down 28% on a year-to-date (YTD) basis.

So, with the Iran war looking to come to a close, can both Bitcoin and Strategy finally get their mojo back? Let's find out.

Q1 Disappoints, But There Is Hope

Bitcoin's winter has been harsh on Strategy. The company's first-quarter numbers reflected that, as the firm witnessed a double miss on revenue and earnings.

While total revenue increased by about 12% year-over-year (YOY) to $124.3 million, this is not a true reflection of the company's core business. Instead, BTC yield is, and it was down to 9.4% in Q1 from 13.7% in the prior-year period. BTC gains of $4.97 billion in Q1 2026 also came in lower than the $5.8 billion reported in Q1 2025. 

Further, losses widened to $38.25 per share from $16.49 per share in the prior-year period. A ballooning of operating expenses to $14.5 billion from just $6 billlion in the year-ago period was the primary reason.

In terms of liquidity, Strategy ended the quarter with a cash balance of $2.2 billion, much higher than its short-term debt levels of $31.4 million.

Strategy's Strategy for Bitcoin

Strategy is looking to remain the preeminent BTC treasury company for the foreseeable future, and to that end, its preferred offerings have a crucial role to play.

The four preferred shares of STRF, STRK, STRD, and STRC serve a structurally different investor than the MSTR stock common shareholder. They offer yield against a Bitcoin-backed balance sheet, which is a product that Strategy built. The mNAV premium hit approximately 2.8 times in January 2025 during the most aggressive phase of the bull cycle, but the current reading sits at just 1.12 times, leaving the equity trading at a meaningful discount to where the cycle peak valuation framework would project. That compression is the opportunity the bulls are pointing toward. However, a prolonged Bitcoin decline could trigger a liquidation event.

Meanwhile, the war chest for future Bitcoin purchases works beyond just Strategy's at-the-market (ATM) equity program. In March 2026, Strategy filed to establish dual $21 billion ATM programs for both MSTR common stock and STRC preferred stock, plus an additional $2.1 billion program for STRK preferred shares, providing the firm with $42 billion in total capital-raising capacity. Beyond these programs, the 42/42 Plan targets $84 billion in fresh capital by 2027, split evenly between $42 billion in stock sales and $42 billion in debt issuance, potentially pushing holdings above 1.4 million coins representing over 6.7% of total supply. 

Finally, the preferred shares themselves are now functioning as an independent funding channel, with STRK, STRC, STRF, and STRD perpetual preferred stock ATM programs of $21 billion, $4.2 billion, $2.1 billion, and $4.2 billion, respectively, running in addition to the 42/42 Plan. 

What Do Analysts Think of Strategy Stock?

Overall, analysts have a consensus “Strong Buy” rating for MSTR stock. The average target price of $363.62 denotes potential upside of more than 228% from current levels. Out of 18 analysts covering the stock, 15 have a “Strong Buy” rating, one has a “Moderate Buy," one has a “Hold," and one analyst has a “Strong Sell” rating.