Key Highlights
- MSTR shares surged 7.5% past $120, marking a two-month peak as bitcoin momentarily reached $79,400
- The stock has gained 27% across five consecutive trading sessions beginning August 17
- STRC preferred shares broke above $96 for the first time since June, approaching their $100 par value
- The company’s 840,447 BTC position, valued at approximately $65.2 billion, has returned to unrealized gains of about $1.6 billion
- Between Aug. 10-16, Strategy liquidated $333.7 million in MSTR shares, allocating proceeds to STRC dividends, buybacks, and cash reserves now totaling $4.8 billion
Shares of Strategy (MSTR) advanced 7.5% to surpass $120 during Friday morning trading on August 21, marking the stock’s strongest performance in two months. This upward movement coincided with bitcoin’s brief climb above $79,400, representing its peak price level since May 2026.
Since August 17, MSTR has accumulated a 27% gain over just five trading sessions, propelled by a widespread cryptocurrency market surge that elevated total crypto market capitalization from $2.1 trillion to $2.5 trillion within days.
The narrative around Bitcoin overtaking Meta in market capitalization rankings brought renewed focus to digital assets. Ethereum simultaneously reached $2,400 during this period, further energizing the rally among cryptocurrency-related equities.
Fellow crypto stocks tracked MSTR’s trajectory. Coinbase (COIN) advanced 6.81% to $184, while Circle (CRCL) posted a 7% increase, trading at $89.
Strategy’s bitcoin position, which carried an unrealized deficit of $10 billion in June when bitcoin declined to $61,000, has now reversed to positive territory. The firm’s 840,447 BTC were acquired at an average price of $75,653 per coin. With bitcoin currently trading around $77,200, SaylorTracker estimates unrealized gains between $1.3 billion and $1.6 billion.
Market analyst Samson Mow noted that short sellers who positioned against MSTR based on previous unrealized losses might now face forced liquidations, potentially creating additional upward momentum for the stock.
STRC Preferred Shares Approach $100 Threshold
Strategy’s STRC preferred shares rose above $96, their strongest performance since June, after tumbling below $70 during a summer downturn that sparked questions about the company’s capacity to maintain its approximately 11.5% APY dividend. STRC was structured to maintain proximity to its $100 par value via a variable monthly dividend mechanism.
CEO Phong Le has indicated that STRC must recover to the $99-$100 range before Strategy can restart bitcoin acquisitions. This benchmark is now approaching.
Company Accumulates Cash Reserves During Bitcoin Purchase Pause
Strategy has refrained from purchasing bitcoin for approximately two months. During the August 10-16 window, the firm divested $333.7 million in MSTR shares without making any bitcoin acquisitions.
From these proceeds, $52.4 million was directed toward STRC dividend payments and $132.2 million toward STRC buybacks through its Digital Credit Securities Repurchase Program. The company simultaneously increased its USD reserve position to $4.8 billion.
Strive’s SATA preferred stock, a comparable bitcoin-linked security, also recovered to $100 on Friday following a late June decline below $84.
Regarding index inclusion, TD Cowen challenged MSCI’s methodology that could eliminate Strategy from its ACWI IMI index, characterizing the proposal as arbitrary and targeted at excluding particular issuer categories.
Chinese microcap firm MicroCloud Hologram revealed Friday that it obtained 140,268 MSTR shares through the maturity and settlement of structured notes, representing approximately $15.8 million at closing.
From a technical perspective, MSTR encounters resistance at its 100-day EMA of $122. A sustained break above this threshold could establish a pathway toward the 200-day EMA at $156. The RSI currently stands at 66, indicating continued buyer momentum without reaching overbought conditions.
