Strategy Inc. purchased 520 Bitcoin for $34.9 million and added $300 million to its dollar reserve between June 15 and June 21 to support the credit quality of its Digital Credit securities, including STRC. The acquisition, executed at an average price of $67,068 per coin, increases Strategy’s total holdings to 847,363 BTC. While the position is worth roughly $54.8 billion at current prices, the company’s total cost basis stands at $64.1 billion, resulting in paper losses of about $9.3 billion. Strategy’s stack now represents more than 4% of Bitcoin’s entire 21 million coin supply cap.

Capital Allocation and STRC Support

Michael Saylor indicated that the USD Reserve increase to $1.4 billion will continue, with the explicit goal of supporting the credit quality of Strategy’s Digital Credit securities, including STRC. The reserve buildup and Bitcoin purchase were both funded by at-the-market sales of MSTR common stock, with the company selling 2,714,839 shares for approximately $335.5 million. Roughly $25.4 billion in MSTR shares remain available for future issuance under that program.

Market Reaction and Funding Concerns

The announcement has reignited debate regarding Strategy’s funding methods. Treasury BTC founder and CEO Khing Oei noted that while the Bitcoin purchase was expected, the financing method carries the most important signal. He pointed out that issuing common shares to buy Bitcoin becomes accretive when the stock trades above roughly 1.22x multiple-to-net-asset value (mNAV). With MSTR recently trading around 1.13x mNAV, Oei argued that common equity is no longer the company’s cheapest source of capital. He also noted that Strategy’s preferred share vehicle, STRC, is constrained when it trades below its $100 par value.

Dilution and Analyst Commentary

Market commentator Ran Neuner criticized the purchase, claiming it marked the third consecutive week in which shareholders were diluted. He argued that issuing shares while MSTR trades below its mNAV threshold reduces Bitcoin per share, a key metric for investors. "He is addicted to buying at any cost," Neuner said of Saylor, suggesting Strategy might be pursuing growth targets sought by analysts or rating agencies. His conclusion was that Saylor should stop and do nothing until the storm passes. Conversely, crypto analyst Michaël van de Poppe argued that fears surrounding Strategy and its capital structure are overblown, suggesting STRC could drag Bitcoin back up.

Stock Performance and Technical Levels

MSTR closed last week down 3.46% to $112.53, breaking below the rising trendline from February’s lows. The stock is recovering in pre-market Monday near $116.50, with RSI at 34.04 sitting deep in oversold territory. The full bearish EMA stack remains overhead between $133.21 and $188.89. Holding the pre-market gain and reclaiming the broken trendline at $116.49 opens a squeeze toward the 20 EMA at $133.21, while losing today’s low at $107.85 opens a path toward the $100 psychological floor.

Bitcoin cannot rally at the moment because every speculative dollar is chasing AI stocks instead, according to veteran investor Jordi Visser. In an interview with Anthony Pompliano, Visser argued that Bitcoin and SpaceX function the same way for investors: both are belief-driven bets on the future with no current earnings to anchor a valuation. He noted that Bitcoin draws energy from wealthy individuals hiding money from governments and retail momentum chasing returns, and right now neither source is showing up.

Visser stated that it is very difficult for Bitcoin to travel higher if all the money is going into assets based on earnings. He added that Bitcoin remains in a bear market until it breaks and holds above its 200-day moving average, a threshold it has failed to reach on recent attempts at the 20-day moving average. This technical weakness contributes to the current investor discomfort, with Bitcoin trading well below its 200-day average.

Capital Rotation and AI Spending

Visser indicated that the key factor to watch is the spending on chips and data centers by AI companies. While this spending is growing close to 100% this year, it is only expected to grow 30% in 2027. He warned that a slowdown becomes a real problem if a major tech company announces it is cutting back on that spending. Microsoft stands out as a likely candidate, given CEO Satya Nadella’s public comments about model commoditization and a possible shift toward hosting DeepSeek internally.

Visser expects Q2 earnings to disappoint more than Q1 simply because expectations have climbed too high, projecting around 22% earnings growth that the market may not fully deliver. If AI stock momentum stalls even briefly while the broader market holds flat, Visser said that environment favors Bitcoin far more than one where AI continues compounding 50% per quarter.

Retail Sentiment and Outlook

Retail traders in markets like South Korea, historically heavy Bitcoin participants, have rotated their attention elsewhere as AI captured the speculative spotlight. Visser framed this as a simple capital rotation dynamic rather than a verdict on Bitcoin’s long-term thesis. On his own portfolio, Visser said 18 of his 20 holdings were down on a recent trading day, including Bitcoin, with only two AI-related positions finishing higher and covering the losses elsewhere.

Despite the current stagnation, Visser emphasized that Bitcoin and the broader crypto market retain significance in an AI-driven world. He argued that as AI generates increasing amounts of fake content, the ability to prove authenticity becomes more valuable. Consequently, he views blockchain as essential for verifying reality, tracking ownership, and confirming event attendance. Stablecoins, tokenization, and non-fungible tokens (NFTs) are cited as the pillars supporting this real-world utility. He said he still likes Bitcoin at current levels but is waiting for a pause in AI’s rally before expecting crypto to participate meaningfully again.