MSTR Stock Forecast as Strategy Reports $21 Billion Bitcoin Gain in Q3

MSTR stock rose during Monday trading after Strategy disclosed a $20.91 billion third-quarter digital-asset gain.

Shares traded around $164–$165 on Oct. 5, up roughly 2%–3% from Friday’s $160.01 close. Bitcoin also traded near $86,000, supporting Strategy’s Bitcoin-heavy balance sheet.

The company separately acquired another 334 BTC and repurchased $176.3 million of STRC preferred shares.

MSTR Stock Jumps as Strategy Reports Bitcoin Gains

Michael Saylor’s Strategy made a strong reversal in the third quarter as Bitcoin staged a strong recovery. Bitcoin soared by over 37% during the quarter, moving from a low of $57,800 in July to a high of $87,400. The rally continued as investors bought the dip after it plunged from a record high of $126,300 to $57,200 within months.

These gains have helped Strategy report substantial gains in the past few months. In a statement, the company said that its Bitcoin holdings gained $21 billion in the third quarter, its best month in over a year.

More data show that the company’s Bitcoin holdings are now profitable, with an average cost basis of $75,436, much lower than the current price of $86,000.

Separately, Strategy continued buying Bitcoin last month. It acquired 334 coins last week, bringing its holdings to 848,000. These coins are now valued at close to $73 billion. In July, these coins were valued at less than $50 billion.

The company also continued to repurchase the STRC shares. It bought stock worth over $176 million. Strategy now holds cash that can help it pay dividends in the next 3.6 years. This explains why the STRC stock has moved close to par level, a few months after dropping to $76.

Bitcoin Price Has Bullish Catalysts

BTC price has notable catalysts that could boost its performance in the coming weeks, which may help boost Strategy shares.

First, it may benefit from the ongoing surge in US bond yields, which have been driven by the rising US government debt. Bitcoin is often seen as a hedge against the US debt, with most investors comparing it to digital gold.

Second, Bitcoin ETF inflows have continued rising in the past few months. They have now added over $6 billion in assets in the past three months, which has helped them to pare back the losses experienced earlier this year. Strong Bitcoin ETF inflows are bullish for the coin as they point to more gains.

Third, Bitcoin has also formed a golden cross pattern as the 50- and 200-day moving averages crossed, potentially pointing to further gains in the near term.

A strong Bitcoin surge will lead to a strong performance of Strategy because of its approach of buying and accumulating coins.

MSTR Stock Price Technical Analysis

The daily timeframe chart shows that MSTR stock has rebounded in the past few months as Bitcoin has continued rising. It jumped from a low of $83.10 in June to the current $164.

The stock has already moved above the 50-day and 200-day Exponential Moving Averages, which are providing it with substantial support. Also, it has formed a bullish flag pattern.

Therefore, the stock will likely continue rising, potentially to the psychological level of $200. A move above that level will point to more gains, potentially to the resistance level of $250.

On the other hand, a drop below the key support level of $130 will invalidate the bullish outlook and point to more downside, potentially to $100.

This article is for informational purposes only and does not constitute financial or investment advice. Bitcoin prices, treasury valuations and technical targets can change rapidly and do not guarantee future stock performance.