Shares of Strategy Inc (Nasdaq: MSTR) rallied 7.8% to $132.54 during Friday's regular session, closely tracking a rebound in bitcoin. The cryptocurrency gained approximately 4.5% to reach $69,213, lifting other digital-asset-focused names including Coinbase, Marathon Digital, and Riot Platforms.
Leveraged Bitcoin Proxy
The movement is significant because Strategy's stock has evolved into a leveraged proxy for bitcoin, allowing investors to adjust their crypto exposure without directly holding the digital asset. This leverage often amplifies the stock's swings relative to bitcoin itself, particularly when market risk sentiment shifts.
According to its corporate dashboard, Strategy holds 714,644 bitcoin acquired at an average price of $76,056 per coin, representing a total investment of roughly $54.35 billion. This substantial position keeps MSTR's valuation tightly correlated with daily bitcoin fluctuations, even as the company maintains its core analytics software business.
Financing and Dividends in Focus
Financing strategies have returned to the spotlight. The company has utilized at-the-market offerings alongside preferred shares that rank above common stock for dividend distributions. Its variable-rate preferred stock, STRC, recently traded near its $100 stated value—a level market participants monitor as it influences the firm's cost of raising new capital.
A recent regulatory filing disclosed that Strategy increased the annual dividend rate on STRC to 11.25% for periods beginning February 1, declaring a monthly dividend of $0.9375 per share payable February 28 to shareholders of record on February 15.
Meanwhile, cryptocurrency policy developments are emerging. U.S. Treasury Secretary Scott Bessent suggested that federal digital-assets legislation would provide "great comfort to the market" and encouraged congressional action aimed at a spring signing.
Downside Risks Remain
The potential for volatility persists. If bitcoin reverses course, Strategy's financial results could deteriorate rapidly. Mark-to-market accounting adjustments contributed to a $12.4 billion loss in the fourth quarter, and the company reduced its 2025 outlook late last year amid a crypto market downturn. CEO Michael Saylor emphasized after the earnings report that actions by major financial institutions, banks, and regulators constitute the fundamental drivers.
Traders are likely to continue treating MSTR as a barometer for bitcoin's next directional move, especially heading into a weekend when cryptocurrency markets operate continuously. The next key date is February 15, the record date for Strategy's upcoming STRC dividend payment.
