Strategy Inc.'s Bitcoin-Fueled Rally Faces Risks of Rising Treasury Yields
Strategy Inc.'s stock price surged by 5.7% to EUR 142.86 on Tuesday, following unexpectedly tame US inflation data that boosted appetite for risk across markets.
The company's valuation is closely tied to the performance of Bitcoin, with which it has a significant stake. Strategy acquired 1,665 BTC between September 21 and 27, funded through sales of MSTR stock, bringing its total holdings to 847,666 BTC.
The move reflects the company's strategy of buying more coins with new shares issued, which in turn lifts the Bitcoin-per-share metric as long as the market awards a healthy premium over the value of its crypto stash.
However, if the premium compresses, the same mechanism works in reverse, and existing holders absorb the dilution without the offsetting benefit.