Shares in Michael Saylor’s Strategy (MSTR) stock have rallied a bit on Wednesday amid a BTC run back to $90,000. Bitcoin has recently gone through a chaotic phase in its cycle. This phase was marked with a sharp plunge, triggered by multiple macro developments such as Fed volatility and trade tariffs. However, BTC is now showing signs of rejuvenation and seems to be recovering, which could help reignite the fire under MSTR stock. At press time, the shares are down over 39% in the past month to $175.64.
Amid the price drop, Strategy is attempting to reassure investors over its Bitcoin risk. The firm said its Bitcoin holdings would cover convertible debt by nearly six times even if BTC fell to its average cost basis of $74,000. With BTC back at $90,000, that scenario may not need to play out.
Despite BTC’s recent dip, investors still see a rebound coming, including former Strategy CEO Michael Saylor. The Strategy (MSTR) founder forecasted Bitcoin (BTC) to reach $150,000 by the end of 2025 in an October interview. Furthermore, this week he highlighted rising levels of Bitcoin-backed credit, citing data showing steady weekly growth from mid-September to late November.
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The company currently holds about 649,870 Bitcoin, worth roughly $56 billion at recent prices. Thanks to the recent MSTR slump, though, the company is now worth less than its BTC holdings. Despite that realization, Saylor insists that the company will never sell its Bitcoin.
That could be a good thing, as analysts at Bitfinex said on Tuesday that early signs of renewed demand are emerging, even as Bitcoin remains well below its early-November levels. Although November has historically been Bitcoin’s strongest month, both October and November have been unexpectedly weak this year. Bitfinex noted a recent uptick in Bitcoin whale activity as a possible sign that demand is returning. Furthermore, since Nov. 11, the number of wallets holding more than 100 BTC has risen by 0.47%, according to Santiment research. A rise in BTC whales could fuel the asset’s return to $100,000, perhaps by the end of the year.