Strategy Sails to New Heights on Fed Comment, But Shareholders Still Reeling

The NASDAQ's biggest gainer on Thursday was Strategy (NASDAQ:MSTR), a leveraged Bitcoin (CRYPTO:BTC) holding company, which surged 18% to $144.82 after Fed Governor Christopher Waller said he would be 'inclined to support holding rates steady', dropping September rate-hike odds from 63% to 50%.

This unexpected shift in the Federal Reserve's stance had a ripple effect on markets, with Treasury yields falling and Strategy's stock price shooting up. However, despite this impressive gain, Strategy's shareholders are still sitting on a loss of 56% over the past year, while Bitcoin has fallen around 31%.

Strategy carries $6.7B in convertible debt and $400.7M in Q2 preferred dividend obligations, against 846,000 BTC marked well below cost basis. This leverage that fueled Thursday's rally can also cut both ways, leaving investors with a volatile asset.