Strategy Stock Surges as Bitcoin Briefly Tops $80K

Bitcoin chain by Jadamprostore via iStock

Bitcoin (BTCUSD) just had one of its best weeks in months, causing the stock most tied to its fate to rally. Strategy (MSTR), the software firm-turned-Bitcoin treasury company formerly known as MicroStrategy, saw MSTR stock climb alongside the cryptocurrency this past week. The move has arrived after months of a painful drawdown that tested even the company's most loyal shareholders.

For anyone who owns MSTR stock or is thinking about buying it, the last few days offer a reminder of how tightly the stock is bound to Bitcoin's swings — in both directions. Let's take a closer look.

Bitcoin Price Rally Lifts Strategy Stock

Bitcoin broke above $80,000 this past week for the first time in about 15 weeks. The cryptocurrency climbed more than 25% in just 10 days to reach as high as $81,479, marking its strongest weekly rally since March 2023.

Strategy is the largest institutional holder of Bitcoin and is valued at a market capitalization of $48.9 billion. In the last month, MSTR stock has risen 32%. However, shares of the company also trade 65% below the 52-week high of $365.21 and are down 62% for the past year.

On the company's second-quarter earnings call, Strategy Executive Chairman Michael Saylor explained that since Strategy began buying Bitcoin in August 2020, the crypto had climbed 32% while MSTR stock had climbed 42%.