Strategy stock surges on Bitcoin rally

Strategy (formerly MicroStrategy) saw its stock surge multiple times over a period of days, driven by a sharp rally in Bitcoin prices and growing optimism about U.S. cryptocurrency regulation. Bitcoin climbed above $68,000, then $71,000, and later $78,000, pushing Strategy's shares up 12.8%, 8.5%, and 4.9% respectively. The rally was fueled by President Donald Trump pressing Congress to pass the CLARITY Act at a White House crypto event, his statement that the U.S. government was looking at buying Bitcoin on a 'sizable' scale, and the Treasury Department's plan to double the maximum size of long-dated debt buybacks, which lowers yields and makes holding Bitcoin more attractive. Strategy also raised $2.01 billion through equity sales, establishing a $1.59 billion liquidity pool ('USD Cash') and expanding its USD Reserve to $5.10 billion, while repurchasing preferred shares. CEO MicroStrategy indicated the company expects to resume Bitcoin accumulation after a seven-week pause. However, the stock remains down significantly year-to-date, and MSCI has proposed removing Strategy from its Global Investable Market Indexes due to its large treasury asset holdings, which could force index-tracking funds to sell shares. Strategy's equity is effectively a leveraged proxy for Bitcoin, amplifying both gains and losses.