MSTR Stock Faces Critical Support Level as Strategy Purchases 13,627 Bitcoins

Summary:
MSTR stock is currently at a pivotal support level and is showing signs of potential decline as the recent rally in the crypto market appears to be losing steam. Strategy, formerly known as MicroStrategy, has recently added 13,627 Bitcoins to its portfolio, totaling 687,410 coins. However, this aggressive purchasing strategy is raising concerns as the company continues to dilute shareholder value.

Key Takeaways

MSTR stock trades near a critical support level at $157, above its year-to-date low of $150.
The company purchased 13,627 Bitcoins for $1.25 billion, increasing total holdings to 687,410.
Its market net-asset value has fallen to 0.726 as the value of Bitcoin holdings exceeds market capitalization.
The dilution of shares has escalated, now exceeding 300 million as company purchases are funded by share sales.
Short interest in MSTR stock has risen to 10.23%, indicating growing bearish sentiment among investors.

MSTR stock at a make-or-break price as Strategy buys 13,627 Bitcoins - 1

MSTR Stock Under Pressure

MSTR stock is hovering at a significant support level of $157, only slightly above the year's lowest point of $150. Despite this, the stock remains down by 65% from its peak of last July. On Monday, MSTR's shares fell further as Bitcoin retreated to $90,000 after reaching a yearly high of $94,550. This dip followed the announcement of a substantial Bitcoin acquisition by the company.

In its latest move, Strategy bought 13,627 Bitcoins for approximately $1.25 billion, increasing its total Bitcoin holdings to 687,410 coins. This current portfolio is valued at over $62.5 billion, which is considerably more than its market capitalization of over $45 billion and an enterprise value of $59 billion. Consequently, the market net-asset value stands at 0.726, a point of concern for investors.

Michael Saylor commented on this acquisition:

"Strategy has acquired 13,627 BTC for ~$1.25 billion at ~$91,519 per bitcoin. As of 1/11/2026, we hodl 687,410 $BTC acquired for ~$51.80 billion at ~$75,353 per bitcoin."
— Michael Saylor (@saylor) January 12, 2026

Investment Dilution Risks

One significant risk facing MSTR stock is the continued dilution of investors, as the company's Bitcoin purchases are now entirely funded through the sale of its shares. Outstanding shares have remarkably surged to over 300 million, increasing from just 77 million in 2021. This level of dilution is set to continue, given that the company has over $11 billion authorized for share sales.

Additionally, MSTR's stock has experienced a decline as more investors are opting to short the stock. The short interest has risen to 10.23%, up from below 8% in 2025.

Technical Analysis of MSTR Stock

MSTR stock
Source: crypto.news

Analyzing the monthly chart reveals that MSTR significantly dropped from a high of $456 last July to its current price of $157, marking five months of consecutive declines.

More worryingly, the stock has dipped below the 50-month Exponential Moving Average, signaling that bearish trends remain in control. It is also nearing a pivotal moment where the Supertrend indicator may shift from green to red for the first time since 2021. This transition would likely solidify a bearish outlook.

The Relative Strength Index (RSI) has also fallen sharply from a peak of 80 in November 2024 to 43, now at its lowest level since 2023. This trend suggests that MSTR stock could face further declines before approaching the oversold zone at 30.

By understanding the current dynamics around MSTR stock and Strategy's investment decisions, investors can make more informed choices in the evolving cryptocurrency landscape.