Fidelity's MSTR Holdings Jump 132% In Q3 — But There's More To Its Bitcoin Bet

The company had roughly the same amount of convertible notes, with a face value of about $128.5 million.

• Fidelity held 1,022,050 Strategy shares, up from 439,718 in June.
• The stake was valued at around $156.5 million as of Sept. 30, compared to $38.2 million in June.
• The company now holds 170,500 shares of Strategy's Strike preferred stock, up from 134,400 shares previously.

Fidelity's parent company more than doubled its holdings of common stock of Strategy (MSTR) in the third quarter.

Fidelity held 1,022,050 Class A shares of the Bitcoin (BTC) treasury company at the end of September, up roughly 132% from 439,718 shares at the end of June. The figures are from FMR's 13F filing with the Securities and Exchange Commission for the period ended Tuesday.

The stake was worth about $156.5 million as of Sept. 30, the filing showed. The filing in June valued the company at about $38.2 million. Part of that leap was from new shares. The rest was due to a sharp rise in Strategy's stock during the quarter.

MSTR’s stock was down over 4% in overnight trading. On Stocktwits, retail sentiment around MSTR remained in the ‘extremely bearish’ zone, while chatter around it improved to ‘normal’ from ‘low’ levels over the past day. 

Most Buying From One Unit

The buying was mostly by Strategic Advisers LLC, the filing said. The unit handles client portfolios and funds of funds for Fidelity. Its Strategy position increased to 762,555 shares from 237,010. That's around 90% of the shares FMR added.

The largest fund manager, Fidelity Management & Research Co., also increased its stake. It held 246,657 shares at the end of September, versus 192,923 in June. Two smaller Fidelity units were added in modest numbers.

Bonds And Preferreds Mostly Steady

The filing also stated that it owned five series of Strategy's convertible notes and Strategy’s 8% Series A perpetual Strike preferred stock (STRK). The two positions were filled in June. The volume of outstanding notes changed little. Their value increased from $126.6 million to about $128.5 million. FMR dropped four series and added one.

Weakness in Strategy's preferreds was widespread in June. Its STRC fell to a 52-week low of $88.50 and closed at $89 on June 17. STRK’s price dropped more than 3% in overnight trading. On Stocktwits, retail sentiment remained in the ‘neutral’ zone as chatter increased to ‘normal’ from ‘low’ over the past day.

FMR also held 170,500 Series A preferred shares at the end of September, up from 134,400. Fidelity Institutional Asset Management Trust Co accounted for most of the increase with a new 40,000-share position. 

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