MSTR Stock Soars 11% Amid Strategy's Debt Reduction Efforts

Strategy (NASDAQ: MSTR) stock has seen an 11% increase in price over the last five trading days leading up to August 28. This rise comes as the company reports that it has enough net assets to cover nearly all of its debts.

The company's USD reserves have surged to $6.69 billion, while its debt stands at $6.75 billion, resulting in a net leverage drop to 0.1%. Strategy is continuing to sell MSTR stock to either buy back STRC or grow its USD reserves. A recent cash pool of $1.59 billion has been set aside to boost the Bitcoin treasury.

STRC shares have seen a 32% increase since June 26 and are now only 2% shy of their par value of $100. Strategy's CEO has stated that the company will not buy more Bitcoin until STRC reaches par, sparking speculation on whether buying may resume soon.

MSTR stock is creating a rounded bottom pattern in its weekly chart, indicating a possible reversal from a downtrend to an uptrend. If this trend continues above the resistance at $120 and with the same 46% gain shown by the rounded bottom, the price could reach $175. However, if this thesis fails, MSTR stock could drop below the support of $100.