Strategy Inc. (NASDAQ:MSTR) jumped 5% on Tuesday as analyst Adam Livingston argued the company is navigating the Bitcoin bear market without meaningful damage, given it raises over $100 million per day on average while keeping all dividends paid.
Why Is Strategy Still Standing While Bitcoin Is Down 50%?
Livingston pointed to Strategy’s mNAV sitting at 1.03x as the key to understanding why the model keeps working.
The market is still pricing MSTR at a premium to its Bitcoin (CRYPTO: BTC) holdings even with Bitcoin down sharply, which lets Strategy keep selling shares to build both its Bitcoin stack and its USD reserve.
“Just keep selling MSTR for more Bitcoin and cash as you see fit,” Livingston wrote. “The gains are latent, sitting there on the balance sheet when Bitcoin decides to move. Drive Bitcoin out of circulation,” he added.
That USD reserve now stands at $3 billion, built through $466.7 million in share sales last week alone between July 6 and July 12.
Strategy’s 843,775 BTC position, purchased at an average of $75,476 per coin, has not changed. All dividends on preferred stock remain current.
Why The Shift To Credit Changes Everything
Analyst Chris Millas argued the real structural shift at Strategy is psychological. The company’s business model now centers on credit instruments rather than equity speculation, and that changes who owns it and what they need from it.
Equity investors chase long-term upside and tolerate volatility. Credit investors need confidence that dividends keep coming regardless of market conditions.
Millas argued that confidence cannot rest on Bitcoin’s day-to-day price and instead requires a USD reserve large enough to fund dividends through a full market cycle, which is exactly what Strategy has been building.
Strategy Also Launched A Bitcoin Banking Adoption Index
Strategy President Phong Le introduced the Bitcoin Banking Adoption Index, which scores 25 major banks on how deeply they have integrated Bitcoin services.
Overall institutional adoption sits at 32%. Fidelity leads at 71%, well ahead of most European and Japanese lenders sitting below 30%.
The index functions as a report card for bank-level Bitcoin adoption, measuring how much of the Bitcoin economy each institution has built into its product offering.
Where Does MSTR Stand Technically?
MSTR trades 3.2% below its 20-day SMA at $100.06 and 44% below its 200-day SMA at $172.88, keeping the longer-term structure bearish even after Tuesday’s move.
The death cross formed in October 2025 remains in place.
MACD sits above its signal line with a positive histogram, pointing to easing downside pressure and improving odds that the bounce extends in the short term.
Key levels for MSTR
- $105 — resistance where rebounds have stalled, sitting near the short-term moving average zone
- $82 — support aligned with the 52-week low at $81.81, where buyers have recently defended
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