Strategy Shares Soar 53% as Bitcoin Bull Run Continues
Strategy (NASDAQ: MSTR) shares have surged 53% in the past month, riding on the back of Bitcoin's 25% climb. As a levered play on the digital asset, Strategy's bull case argues that its share price will grow at a faster clip than Bitcoin over the long term.
The company raises capital by selling common equity and preferred shares, then directs this money toward buying Bitcoin, a scarce asset. However, if capital markets dry up or the crypto is in a down cycle, this playbook can run into trouble.
Strategy has maintained its dividend obligations despite Bitcoin being 36% off its peak from last October. The company's dividend payments totaled $629 million in the first six months of 2026, and it hasn't run into any trouble handling this. It has sold some Bitcoin to ensure it has the resources to avoid defaulting.
Investors who are bullish on Bitcoin's long-term prospects may be willing to take on more risk by initiating a starter position in Strategy stock. However, investors should consider that if Bitcoin's price falls dramatically and stays down for an extended period, Strategy shares will likely be under immense pressure as well.