Michael Saylor’s Strategy (MSTR) stock is making a strong comeback, jumping nearly 40% in one month from around $82 to $140. The rally comes as Bitcoin recovered from the $60,000 range to above $80,650, giving a major boost to one of the market’s biggest Bitcoin-linked stocks.
Strategy’s large BTC holdings have also turned earlier paper losses into billions of unrealized gains.
Bitcoin Rally Gives MSTR a Major Boost
Strategy remains one of the biggest Bitcoin proxy stocks, meaning MSTR often moves more sharply than Bitcoin itself. Therefore, MSTR shares have jumped over 40%, while Bitcoin has recovered roughly 30%, showing its higher sensitivity to BTC price moves.
Strategy held 840,447 BTC at an average cost of $75,385 per Bitcoin. When BTC fell into the low-$60,000 range, the company was facing an estimated $9.5 billion paper loss.
But after Bitcoin moved above $80,000, that position turned into an estimated $4.2 billion to $4.7 billion unrealized profit.
The size of the treasury also makes MSTR highly sensitive to Bitcoin. Every $1,000 move in BTC changes the value of Strategy’s holdings by roughly $840 million.
Strategy Builds a Bigger Cash Pile
The Bitcoin rally is not the only reason investors are watching MSTR. Strategy also raised $2.01 billion by selling 18.26 million MSTR shares through its ATM program.
Instead of using all the money to buy more Bitcoin, the company placed around $1.59 billion into a new USD cash pool. It also spent $136.4 million to buy back 1.43 million STRC preferred shares, helping reduce its future 12% dividend costs.
MSTR Eyes $1,000 as Bitcoin Targets $500K
Michael Saylor has also highlighted Strategy’s preferred securities and their strong yields. As of 27 August, STRD offered a 13.54% effective yield, while STRC offered 12.24%.
As of now, MSTR is trading around $137.40 after briefly reaching the $140 range. The stock is also moving toward its 200-day moving average, a key level for traders.
The bullish outlook is also growing. Bitcoin Wizard Adam Livingston has suggested that MSTR could reach $1,000 if Bitcoin climbs to $500,000.
However, MSTR remains closely tied to Bitcoin, so a sharp BTC drop could quickly erase its recent gains.
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