Key Takeaways
- MSTR shares surged 7.5% past $120, marking a two-month peak as bitcoin momentarily crossed $79,400
- The stock has gained 27% across five consecutive trading sessions beginning August 17
- STRC preferred shares breached $96 for the first time since June, approaching their $100 par threshold
- The company’s 840,447 BTC position valued at approximately $65.2 billion has swung back to an unrealized gain of about $1.6 billion
- Between Aug. 10-16, Strategy liquidated $333.7 million of MSTR shares, allocating funds to STRC dividends, buybacks, and growing cash reserves to $4.8 billion
Shares of Strategy (MSTR) jumped 7.5% to surpass $120 during Friday morning trading on August 21, marking the stock’s strongest performance in two months. The rally coincided with bitcoin’s brief surge above $79,400, its loftiest level since May 2026.
The stock has posted impressive gains of 27% across just five trading sessions starting August 17, riding a wave of renewed crypto market enthusiasm that propelled total cryptocurrency market capitalization from $2.1 trillion to $2.5 trillion within days.
Bitcoin‘s ascent past Meta in market capitalization rankings captured significant market attention and renewed investor interest in digital assets. Ethereum simultaneously reached $2,400, amplifying momentum throughout crypto-adjacent equities.
The broader crypto stock ecosystem mirrored MSTR’s upward trajectory. Coinbase (COIN) advanced 6.81% to $184, while Circle (CRCL) appreciated 7% to $89.
Strategy’s substantial bitcoin treasury, previously underwater by $10 billion in June when bitcoin slumped to $61,000, has returned to profitability. The firm’s position of 840,447 BTC was accumulated at an average entry price of $75,653 per token. With bitcoin currently trading near $77,200, SaylorTracker estimates unrealized gains between $1.3 billion and $1.6 billion.
Market analyst Samson Mow suggested that short sellers who wagered against MSTR based on those previous paper losses might face forced liquidations, potentially creating additional upward price pressure on the equity.
STRC Preferred Shares Approach Par Value Threshold
Strategy’s STRC preferred shares climbed past $96, reaching their highest valuation since June, after plummeting below $70 during summer market turbulence that sparked questions about the company’s capacity to maintain its approximately 11.5% APY dividend payment. The STRC instrument was engineered to trade near its $100 par value through a flexible monthly dividend structure.
Chief Executive Phong Le has indicated that STRC must recover to the $99-$100 range before the company resumes its bitcoin accumulation strategy. That threshold now appears increasingly attainable.
Company Accumulates Cash Reserves During Bitcoin Buying Pause
Strategy has abstained from purchasing bitcoin for approximately two months. During the August 10-16 period, the firm divested $333.7 million in MSTR stock without executing any bitcoin acquisitions.
From these proceeds, $52.4 million was allocated to STRC dividend payments and $132.2 million funded STRC buybacks through its Digital Credit Securities Repurchase Program. The company simultaneously expanded its USD cash position to $4.8 billion.
Strive’s SATA preferred shares, another bitcoin-linked security instrument, similarly recovered to $100 on Friday after dipping below $84 in late June.
Regarding index inclusion, TD Cowen challenged MSCI’s proposed methodology that could eliminate Strategy from its ACWI IMI index, characterizing the proposal as arbitrary and seemingly targeted at excluding particular issuer categories.
Chinese microcap firm MicroCloud Hologram revealed Friday that it obtained 140,268 MSTR shares valued at approximately $15.8 million through the maturation and settlement of structured note instruments.
From a technical perspective, MSTR confronts resistance at its 100-day exponential moving average of $122. A sustained close above this threshold could establish a trajectory toward the 200-day EMA positioned at $156. The Relative Strength Index registers 66, indicating continued bullish momentum without entering overbought territory.
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