Strategy (NASDAQ:MSTR) swung from a $10 billion unrealized loss to an $8 billion unrealized profit in just weeks, as Bitcoin (CRYPTO: BTC) hit $85,000.
What Triggered the Swing
Bull Theory posted on X Monday that the reversal happened fast: Bitcoin’s climb off the summer lows directly repriced Strategy’s massive holdings, turning paper losses into paper gains almost overnight.
Widely-followed market commentator Scott Melker posted on X that Bitcoin sits down 4% on the year while MSTR is up 8%.
“A few months ago, Strategy ‘had to go to 0.’ Remember?” Melker wrote.
Adding to the picture, Cointelegraph reported Sunday that MSTR was the Nasdaq-100’s top performer over the past month, surging 48%.
Why the Company Keeps Adding Bitcoin
As Benzinga reported Monday, Strategy bought 950 Bitcoin for $75.7 million between Sept. 14 and Sept. 20 at an average price of $79,670 per coin.
That purchase ended nearly a month-long buying pause and brought total holdings to 846,000 BTC, worth roughly $71.9 billion and equal to more than 4% of Bitcoin’s 21 million supply cap.
Executive Chairman Michael Saylor‘s “A little more orange” post on X Sunday preceded the announcement, a pattern that has historically signaled fresh purchases.
The company also repurchased 1.77 million STRC preferred shares for around $174 million during the same stretch, continuing efforts to stabilize the preferred stock near par value while resuming Bitcoin accumulation.
Why the Treasury Narrative Could Be Coming Back
Scott Melker broke down the mechanics, noting Strategy “did not do any financial wizardry this week” to buy Bitcoin, instead tapping its own USD reserve to fund the $75.7 million purchase and $174 million of STRC buybacks as the preferred stock climbed near par.
Meanwhile, Strive (NASDAQ:ASST) is running the older playbook, selling shares to fund immediate Bitcoin buys.
Melker argued that much higher Bitcoin prices could be the single biggest cure for the battered treasury sector.
MSTR Price Analysis: Technical Analysis
MSTR surged 9.47% Monday, breaking decisively above both the 200-day EMA at $152.28 and the multi-month descending trendline that capped every rally since May.
Tuesday’s premarket trades at $167.77, down roughly 0.4% from Monday’s close in what looks like a healthy cooldown rather than distribution.
The EMA structure has flipped constructive, with the 20-day EMA trending above both the 50-day and 100-day, confirming the shift out of the summer downtrend.
RSI Divergence Indicator reads 70.90, firmly overbought and echoing the same zone that preceded May’s bearish divergence, warranting caution on chasing entries here.
Key levels for MSTR:
- $168.50 — Monday’s high, now resistance-turned-pivot on any retest
- $152 — 200-day EMA, key support below
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