Key Highlights
- MSTR shares surged 7.5% to surpass $120, marking a two-month peak as bitcoin momentarily reached $79,400
- The stock has gained 27% across five consecutive trading sessions starting August 17
- STRC preferred shares broke above $96 for the first time since June, approaching the $100 par threshold
- The company’s 840,447 BTC position, valued at approximately $65.2 billion, has returned to an unrealized gain of about $1.6 billion
- Between Aug. 10-16, Strategy liquidated $333.7 million in MSTR shares, allocating funds to STRC dividends and buybacks while expanding USD reserves to $4.8 billion
MicroStrategy (MSTR) shares advanced 7.5% to cross $120 during Friday morning trading on August 21, marking the stock’s strongest level in two months. The rally coincided with bitcoin’s brief surge past $79,400, its most elevated price point since May 2026.
The stock has posted a remarkable 27% gain across just five trading sessions beginning August 17, propelled by a sweeping cryptocurrency market upswing that drove total crypto market capitalization from $2.1 trillion to $2.5 trillion in rapid succession.
Bitcoin’s ascent past Meta in market capitalization rankings captured renewed investor interest in digital assets. Ethereum simultaneously climbed to $2,400 during this window, further energizing the rally among cryptocurrency-correlated equities.
Additional crypto-linked stocks followed MSTR’s trajectory. Coinbase (COIN) advanced 6.81% to reach $184, while Circle (CRCL) posted a 7% gain, trading at $89.
MicroStrategy’s bitcoin treasury, which registered an unrealized deficit of $10 billion last June when bitcoin slumped to $61,000, has reversed course into positive territory. The enterprise maintains 840,447 BTC acquired at an average cost basis of $75,653 per coin. With bitcoin trading near $77,200, SaylorTracker estimates unrealized gains between approximately $1.3 billion and $1.6 billion.
Market analyst Samson Mow noted that short sellers who established positions against MSTR based on those previous unrealized losses might face pressure to exit their trades, potentially creating supplementary buying momentum that could elevate the stock further.
STRC Preferred Shares Approach Par Value Threshold
MicroStrategy’s STRC preferred shares advanced beyond $96, representing their strongest performance since June, after tumbling below $70 during summer market turbulence that sparked uncertainty regarding the company’s capacity to maintain its approximately 11.5% APY dividend commitment. STRC was engineered to maintain proximity to 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 can restart bitcoin acquisition activities. That threshold now appears achievable.
Company Accumulates Cash Reserves During Bitcoin Purchase Hiatus
MicroStrategy has abstained from purchasing bitcoin for approximately two months. During the August 10-16 window, the firm divested $333.7 million in MSTR shares without conducting any bitcoin acquisitions during this timeframe.
From these proceeds, $52.4 million was allocated to STRC dividend payments and $132.2 million directed toward STRC share repurchases through its Digital Credit Securities Repurchase Program. The company simultaneously expanded its USD cash position to $4.8 billion.
Strive’s SATA preferred security, a comparable bitcoin-linked financial instrument, also recovered to $100 on Friday after declining below $84 in late June.
Regarding index considerations, TD Cowen challenged MSCI’s methodology that could eliminate Strategy from its ACWI IMI index, characterizing the proposal as discretionary and designed to exclude particular issuer categories.
Chinese microcap firm MicroCloud Hologram announced Friday it obtained 140,268 MSTR shares through the maturation and settlement of structured notes, representing approximately $15.8 million in value at transaction completion.
From a technical perspective, MSTR confronts resistance at its 100-day exponential moving average of $122. A decisive close beyond this threshold could establish a trajectory toward the 200-day EMA positioned at $156. The Relative Strength Index registers at 66, indicating sustained bullish momentum without entering overbought conditions.
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