Strategy's MSTR Surpasses Bitcoin Rally as STRC Recovers Toward $100

Bitcoin's recent price recovery has lifted Strategy's (MSTR) common stock, which has outperformed Bitcoin despite the company continuing to issue new equity.

The rebound in MSTR shares has been significant, with prices climbing from $92.52 on August 18 to $126.79 on Tuesday, a gain of about 37%. This is even more impressive considering that Bitcoin gained roughly 22% over the same period, rising from around $64,700 to the $79,000 to $80,000 range.

Strategy's MSTR stock has benefited from the company's financing model, which allows it to raise capital without requiring Bitcoin sales. The company has sold a total of 18.26 million MSTR shares through its at-the-market program between August 17 and 23, raising $2.01 billion in net proceeds.

The increased liquidity has given Strategy a stronger financial position, allowing it to direct some funds toward repurchasing STRC shares and adding to its USD Reserve. The company now holds about $6.69 billion in dollar liquidity, with the USD Reserve earmarked for preferred-stock dividends and interest on outstanding debt.