MSTR Shares Drop 4.17% with $3.79B in Trading, 15th Market Activity as $309.9M Raise and Bitcoin Buy Spark Dilution Fears

On August 25, 2025, Strategy (MSTR) fell 4.17% with a trading volume of $3.79 billion, ranking 15th in market activity. The decline followed the company’s announcement of a $309.9 million capital raise through the sale of 875,301 MSTR Class A shares under its at-the-market program. The transaction left $16.73 billion in remaining capacity for future issuances under this facility. The company also updated its share-issuance guidance, allowing sales below 2.5x modified net asset value (mNAV) if deemed “advantageous,” a shift from prior commitments to issue only at a 2.5x mNAV or higher. Strategy simultaneously acquired 3,081 bitcoin for $356.9 million, increasing its total holdings to 632,457 BTC with an average purchase price of $73,527 per coin.

The stock’s performance was further pressured by broader market dynamics. A Monness analyst reiterated a “Sell” rating, citing risks tied to Strategy’s funding model, which relies on dilutive equity issuance to finance bitcoin purchases. Bitcoin prices retreated below $112,000, their lowest since early July, exacerbating investor concerns. While the company’s updated guidance offers flexibility in capital-raising, the move underscores the tension between maintaining liquidity and shareholder dilution. The recent $356.9 million bitcoin purchase highlights Strategy’s continued commitment to its core strategy, despite the volatility in both its stock and the underlying cryptocurrency.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The CAGR was 6.98%, with a maximum drawdown of 15.46% during the backtest period. The strategy demonstrated steady growth over time, making it a robust choice for investors seeking consistent returns. However, the significant drawdown in mid-2023 highlights the importance of risk management in high-volume trading strategies.