Key Insights:
- MicroStrategy doubled its Bitcoin holdings to 636,505.
- Bitcoin is up 19% since the November 2024 peak.
- MSTR stock slipped 39% despite BTC per share gains.
MicroStrategy (MSTR) stock has quietly diverged from its Bitcoin Treasury strategy. In late August, the company’s shares slid to four-month lows even as Bitcoin continued to climb.
This split is striking: since its November 2024 peak, MicroStrategy has vastly grown its BTC stash, yet MSTR is trading well below those highs.
For example, MicroStrategy held only 252,220 Bitcoin at the end of Q3 2024, when its stock last topped out. By mid-2025, the firm’s holdings had swelled to over 630,000 BTC, roughly 2.5× larger.
In other words, each share now represents much more Bitcoin than it did at the prior peak. BTC’s price also rose significantly in this period, meaning MicroStrategy’s digital assets are worth far more, even as the MSTR stock trades 39% below its all-time share-price high.
Record Bitcoin Accumulation Outpaces MicroStrategy Stock Decline
MicroStrategy has funded this accumulation by tapping the capital markets. Since late 2024, the company has issued tens of millions of new shares to raise roughly $28 billion for BTC purchases.
Crucially, almost all proceeds were plowed into the Treasury, not operations. The result: the dilution has been accretive in bitcoin-per-share terms.
MicroStrategy’s own metrics confirm this. Its “BTC Yield” KPI, defined as the percent change in BTC holdings per (diluted) share, has climbed to 25%. It reflects that each share now corresponds to significantly more BTC than before.
In plain terms, every new share raised enabled the purchase of roughly the same amount of Bitcoin or more, so the net BTC-per-share ratio actually rose.
Analyst commentary echoes this, that issuing equity at a time of high BTC premiums effectively lets MicroStrategy buy bitcoin at a discount to market, a strategy long promoted by Saylor.
At the end of Q3 2024, Strategy’s balance sheet held 252,220 BTC, costing $39K each. By March 2025, that was 528,185 BTC, and by late August, it exceeded 632,000 BTC.
In sum, the firm nearly doubled its Bitcoin holdings since its stock’s all-time high. All the while, it raised capital, with Q4 2024 alone seeing 42.3 million shares sold for $15.1 billion, and Q1 2025 adding 19.3 million shares ($6.6 B).
This led to one of the biggest BTC-financed equity dilutions in history, yet on a per-share basis, the strategy “has been slowly climbing” in yield.
Bitcoin Rally and On-Chain Signals
Bitcoin’s price has also remained firm, adding to the on-paper gains of MicroStrategy. BTC surged roughly 25% in Q2 2025 after a relatively quiet spring.
As of late August, Bitcoin hovered near $110–112K, marking around 19% surge from its level in late 2024. Broader market data underscore the strength that on-chain metrics indicate, pointing to robust accumulation.
Bitcoin’s monthly exchange outflow/inflow ratio has fallen to 0.9, a level last seen at the 2022 bear-market bottom. A reading below 1.0 means more BTC is leaving exchanges than coming in, a classic signal of long-term buying.
Indeed, roughly 19,400 BTC ($2.1 billion) moved into “institutional-grade” wallets in July 2025, suggesting strategic accumulation by large holders.
At the same time, broader trading trends are mixed. Spot trading volumes on major exchanges dropped about 22% in Q2, even as prices held up – implying retail turnover is subdued.
Derivatives markets remain large, and institutional flows, via funds and treasury stock offerings, have been significant. This bifurcation – rising prices but lighter spot volume – often occurs in maturing bull runs.
Why is MicroStrategy Stock Down?
It is noteworthy that MicroStrategy stock is not alone in its pullback. Other “Bitcoin treasury” and crypto stocks have also fallen from recent peaks.
For instance, Marathon Digital (MARA) is down 19% month-to-date, Coinbase (COIN) 27%, and Riot Platforms (RIOT) 15%.
For both retail and institutional investors, the MSTR stock case highlights a gap between fundamentals and market pricing. If Bitcoin’s bullish trends and Saylor’s capital strategy continue, MSTR shares could eventually reflect their enlarged BTC backing.
In the meantime, the divergence may narrow only if sentiment around crypto-assets improves. On-chain data imply bitcoin demand is healthy, while trading volumes remain mixed. Regulatory clarity on stablecoins and digital assets is widely expected to be a positive tailwind.
The MicroStrategy stock decline seems more driven by market sentiment than its own financial health. Despite a strong track record, including a near-doubling of its Bitcoin treasury, high BTC-per-share growth, and a 20% increase in BTC price since the stock’s last peak, the stock has struggled.
However, the MSTR stock languishes, suggesting investors are wary of lingering headwinds, equity dilution, crypto volatility, or macro uncertainty, despite the company’s gains.