U.S. equity markets reopened on Monday, July 6, following the July 3 holiday break, with Strategy Inc (NASDAQ:MSTR) trading at $100.77, up 7.9%. The gain comes as investors digest the company's latest capital-raising activities and its evolving approach to bitcoin treasury management.
Stock Sale Details
In its June 29 Form 8-K filing with the SEC, Strategy disclosed that it sold 12,669,017 shares of Class A common stock between June 22 and June 28, generating net proceeds of approximately $1.1524 billion. Notably, the company did not purchase any bitcoin during that week, maintaining its holdings at 847,363 BTC. The filing also outlined a BTC monetization plan that could add up to $1.25 billion to its USD reserve, meaning last week's stock sale covered about 92% of that reserve target.
Market Performance and ETF Activity
Strategy's stock price remained firm heading into the long weekend, closing at $100.77. In comparison, the Invesco QQQ Trust (NASDAQ:QQQ), which tracks the Nasdaq 100, declined 1.7% to $712.60. Leveraged 2x long MSTR exchange-traded funds saw significant activity: the T-Rex 2X Long MSTR Daily Target ETF (BATS:MSTU) jumped 15.7% to $2.15 on volume of 122.0 million shares, while the Defiance Daily Target 2X Long MSTR ETF (NASDAQ:MSTX) added 15.4% to $9.83 on 13.2 million shares traded.
Combined, MSTU and MSTX traded 135.2 million shares, nearly four times MSTR's own volume of 34.8 million shares. However, in dollar terms, their combined turnover of approximately $392 million represented only about 11% of MSTR's $3.50 billion in last-price turnover. Both ETFs aim to deliver twice the daily return of MSTR, making them a proxy for short-term bullish sentiment on the stock.
Bitcoin Valuation and mNAV Dynamics
Strategy's bitcoin holdings translate to 211,157 sats per share. Based on Sunday's bitcoin price of $62,639, this equates to approximately $132.27 per MSTR share, well above the stock's closing price of $100.77. This gap highlights the mNAV (market value to net asset value) story that has been a focal point for analysts. According to a Reuters report from June 29, Strategy's enterprise value had slipped below its bitcoin stash, with mNAV at 0.99 at last close. While shares have since bounced, easing some pressure, preferred dividends and interest claims remain sticking points in the trade.
Management Commentary
Founder and Executive Chairman Michael Saylor reiterated that Strategy "remains committed to Bitcoin as its primary treasury reserve asset." CEO Phong Le emphasized the company's evolution "from one-way capital issuance to active capital management," while CFO Andrew Kang succinctly stated, "Bitcoin is capital."
Matthew Sigel, head of digital assets research at VanEck, commented on Sunday that investors are now "buying a hedge fund" capable of trading its own capital stack and bitcoin. "What P/E do you pay for such a hedge fund? I pay very low," Sigel said on Scott Melker's podcast, as reported by Stocktwits. Nic Puckrin, founder of Coin Bureau, called the strategy a "responsible move from Saylor," while Andrei Grachev of DWF Labs noted that "uncertainty itself becomes a reason to wait."
Outlook
As Strategy enters the week with the July 6 reopen, the company said it will disclose any significant BTC sales and other capital markets transactions through its usual Form 8-K filings. The next key date is July 15, which serves as the record date for STRC holders for the July 31 preferred dividend. Investors will be watching closely to see how the company balances its bitcoin treasury with its evolving capital management strategy.
