Strategy Inc, formerly known as MicroStrategy, added approximately $7.8 billion to its market capitalization over two trading sessions as Bitcoin climbed back above $72,000, reigniting investor demand for crypto-linked equities.
The company's stock, trading under the ticker MSTR, closed at $92.52 on Tuesday before rising 12.68% to $104.25 on Wednesday. Continuing upward momentum brought the stock near $113 on Thursday, marking a roughly 22% increase from Tuesday's close. Based on approximately 384.23 million outstanding shares, the rally lifted Strategy's estimated market capitalization from about $35.5 billion to $43.4 billion. A Binance-listed tokenized version of the stock, MSTRB, reflected similar momentum and traded near $112.84 against USDT.
The primary catalyst behind the equity surge was Bitcoin, which climbed roughly 12% over two days to reach an intraday high near $72,475. Strategy holds 840,447 Bitcoin, making its equity one of the market's most sensitive proxies for the cryptocurrency. With Bitcoin trading around $72,000, the company's holdings are valued at approximately $60.5 billion, up from about $54 billion earlier in the week when Bitcoin hovered near $64,300.
The cryptocurrency's advance toward Strategy's average acquisition price of $75,385 has rapidly reduced the paper deficit on a position that cost the company approximately $63.36 billion. Narrowing this gap alleviates concerns that an extended crypto downturn could compel the company to sell additional coins to meet preferred stock dividends and interest obligations.
Several macroeconomic and regulatory developments contributed to the broader market rebound. The U.S. Treasury increased the permitted size of its long-duration bond buyback operations from $2 billion to at least $4 billion, briefly lowering long-term yields. Additionally, President Donald Trump renewed calls for Congress to advance the Clarity Act, aimed at establishing clearer regulatory boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Bitcoin's break above $70,000 also triggered short liquidations, accelerating the rally alongside double-digit advances in Ether, XRP, and other digital assets.
Strategy also entered the rally with an expanded liquidity buffer. The company reported no Bitcoin purchases or sales during the week ending August 16, maintaining its total holdings at 840,447 BTC while raising $333.7 million by selling approximately 3.46 million MSTR shares. Of those proceeds, $149.1 million was added to its dollar reserve, bringing it to $4.8 billion, while $52.4 million went toward preferred dividends and $132.2 million was used to repurchase STRC preferred shares.
While the larger cash reserve offers flexibility to cover obligations without immediately selling Bitcoin during market downturns, the funding method underscores the principal risk of share dilution. Strategy continues issuing common stock to finance its capital structure, meaning a rising Bitcoin treasury does not automatically translate into an equal increase in Bitcoin exposure per share.
