Shares of bitcoin development company Strategy (NASDAQ:MSTR) saw a notable uptick of 3.4% during the afternoon trading session, driven by a rise in Bitcoin prices and a reaffirmation of its ‘Buy’ rating by investment bank Benchmark. The global cryptocurrency market cap also reflected this positive momentum, with Bitcoin itself increasing by 1.52% to trade around $89,168.
This favorable movement significantly benefited MicroStrategy, which has heavily invested in Bitcoin as part of its corporate strategy. Supporting this optimistic outlook, Benchmark maintained a bullish stance on the company’s long-term strategy, setting a price target of $705 for 2026. The bank’s assessment is rooted in the company’s substantial Bitcoin exposure.
This surge comes on the heels of a rough patch for Strategy’s stock, which had plummeted nearly 58% over the last three months. Following an initial spike, shares cooled to $157.56, still reflecting a gain of 3.7% from their previous closing price. The volatility of Strategy’s shares is notable, having experienced 57 moves greater than 5% in the past year. Today’s increase signals that while the market views this recent news as impactful, it may not signify a substantial shift in fundamental business perceptions.
The stock had previously faced downward pressure when it fell 4.4% after the company announced a pause in its Bitcoin purchasing strategy to bolster cash reserves—a move seen by many analysts as defensive amid possible market downturns. Notably, Citigroup also lowered its price target for the stock from $485 to $325 while still maintaining a ‘Buy’ rating, further affecting investor sentiment.
In a strategic financial maneuver, Strategy sold 4.5 million shares, raising approximately $748 million and increasing its cash holdings to $2.19 billion. This suspension of Bitcoin purchases has been interpreted as a precautionary measure, highlighting concerns about potential declines in the cryptocurrency market. Compounding these challenges, recent decisions, such as MSCI’s choice not to include Strategy in a critical index, have put additional pressure on the stock.
For investors who had placed $1,000 in Strategy’s shares five years ago, their investment would now stand at approximately $3,705, indicating a significant long-term gain despite the recent volatility.
