Strategy's stock price has performed better than Bitcoin in 2025

MSTR has jumped by 32% in 2025, while BTC is up by 20%. However, MSTR stock remains 26.5% below its all-time high

Strategy's (NASDAQ:MSTR) stock price has performed better than Bitcoin (BTC) in 2023 as the company continued its accumulation. MSTR has jumped by 32% in 2023, while BTC is up by 20%.

However, MSTR stock remains 26.5% below its all-time high, even though Bitcoin surged this week. This article predicts whether it will ultimately break out and move to its all-time high this week.

Why Strategy Stock is Below its ATH

In theory, this should be the best time for Strategy, the biggest corporate Bitcoin holder in the industry. Instead, the coin has been confined to a narrow range this week despite Bitcoin finally breaking out to a record high.

A major factor in this underperformance is that investors are afraid of the continued dilution as the company's management has issued more shares to buy Bitcoin. As a result, the company's outstanding shares have risen from 76.5 million in 2020 to 246 million today, a 226% increase.

Strategy's investors will continue being diluted as the company's management prepares for more issuances to buy BTC. This week, it announced that it would raise $2.1 billion soon for corporate activity, including BTC purchases.

Strategy plans to raise $84 billion in the long term for these purchases, leading to more dilution. Dilution is viewed negatively because it leads to a smaller ownership of a company and lower earnings per share (EPS).

Strategy's stock price has also wavered due to its high valuation. It holds Bitcoins worth $60 billion, while its valuation stands at $115 billion. Most analysts believe that its software business is worth much lower than that because it is shrinking.

Therefore, some investors believe the disparity between its Bitcoin asset valuation and market capitalization will diminish over time.

MSTR Stock Price Analysis

The daily chart shows that the MSTR share price formed a double-bottom pattern at $234 and a neckline at $343. A double bottom is one of the most popular bullish reversal patterns in technical analysis.

Strategy stock has remained above the 38.2% Fibonacci Retracement level and is forming a bullish flag pattern, a popular continuation pattern.

Therefore, if the Bitcoin price rally accelerates, the stock will likely experience a strong bullish breakout, potentially jumping by 30% to retest its all-time high at $543.