
Strategy (MSTR) stock falls 14% as traders hedge with puts, but the company shocks markets with a record $2.5B Bitcoin purchase.
Despite market volatility, Strategy now holds over 628K BTC and insists it can weather a drop to $20K per coin without risk.
This might come as a shock.
Strategy (MSTR), the worldโs largest corporate holder of Bitcoin, is under pressure and options traders are bracing for more downside. The stock has dropped over 14% in the last two weeks, slipping below its 50-day simple moving average, a key technical level watched by many investors.
But instead of slowing down, Strategy is doing the opposite. The company just pulled off its biggest Bitcoin purchase of 2025, raising eyebrows in the middle of a selloff.
Letโs break down whatโs really going on.
Put Demand Soars as Traders Hedge Against Strategy
With MSTR sliding, options traders are moving fast to hedge against further losses. According to Market Chameleon, the put-call implied volatility skew rose to 3.6% on Wednesday, the highest level since April.
That means traders are now paying a premium to protect their downside. Itโs a clear sign that sentiment is shifting, and many expect the pressure on Strategyโs stock to continue in the near term.
$2.5 Billion Raise, 21,021 BTC Bought
While the market turns cautious, Strategy just made its boldest move yet.
The company raised $2.5 billion by selling 28 million shares of its preferred stock, STRC, at $90 each. Thatโs now the largest public offering in the U.S. this year, beating out Circleโs $1 billion public debut in June.
The funds were used to buy 21,021 Bitcoin at an average price of $117,256 per coin, pushing Strategyโs total BTC holdings to 628,791 BTC, worth more than $74.7 billion.
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โEven at $20K Bitcoin, Weโre Fineโ
As Bitcoin price volatility rattles the market, Strategy recently insisted itโs fully prepared.
โ$BTC could crash to $20K and $MSTR would still have sufficient collateral to cover all liabilities. Model it yourself,โ said Chaitanya Jain, Strategyโs Bitcoin strategy manager, responding to online concerns about overexposure.
With its BTC-backed debt instruments like STRK, STRF, and STRD, the company says itโs positioned for long-term survival and not just short-term gains.
Is MSTRโs Momentum Slowing?
So far, the strategy seems to be paying off and the company does not show signs of immense struggle.
โFinance bros are becoming Bitcoiners,โ Jain had said, pointing to a broader shift in traditional finance toward Bitcoin-backed strategies.
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Strategyโs stock is under pressure, and traders are betting it could fall further. But the company isnโt slowing and is doubling down. All in on Bitcoin!
FAQs
MSTR fell 14% in 2 weeks, breaking below 50-day MA. Options traders hedge with puts as IV skew hits 3.6%, signaling bearish sentiment.
Execs claim MSTR could withstand BTC at $20K, with sufficient collateral for all STRK/STRD debt obligations despite market volatility.
No – despite stock pressure, MSTR accelerates buys with record $2.5B raise, signaling unwavering commitment to Bitcoin accumulation strategy.