Strategy Stock Skyrockets as Net Leverage Drops to 0.1%

Strategy (NASDAQ: MSTR) stock has seen an 11% increase in value over the last five trading days, culminating on August 28. This surge comes as the Bitcoin treasury company reports it now has sufficient net assets to cover nearly all of its debts.

The USD reserves have grown to $6.69 billion, while debt stands at $6.75 billion, leaving a net leverage of just 0.1%. Strategy's cash reserve growth is closely tied to the rising price of STRC preferred stock, with STRC shares up by 32% since June 26 and now only 2% shy of its par value of $100.

With this development, speculation is mounting on whether Strategy will resume buying Bitcoin. As of August 28, the company holds 840,447 BTC valued at $66 billion, with an unrealized profit of $3.2 billion after the recent surge in BTC price to $80,000.

MSTR stock has been showing a rounded bottom pattern on its weekly chart, indicating a potential reversal from a downtrend to an uptrend. If this continues above the resistance at $120, MSTR could reach as high as $175 if it follows the same 46% gain seen in the rounded bottom pattern.