Strategy ($MSTR) Leads Bitcoin Sector As BTC Hits $91k
Bitcoin-linked stocks experienced a surge on Tuesday as the broader crypto market made a sharp recovery and Bitcoin reclaimed the $91,000 level. One standout performer was Strategy, which outpaced Bitcoin’s rebound and most major tech names at times. MSTR shares climbed as high as 8.66% to $186.26, driven by heavy trading volume exceeding 4.4 million shares. Currently, MSTR is trading at $182.74.
The increase in Bitcoin equities reflected renewed interest in high-beta exposure to the digital asset through equities. Other crypto-adjacent stocks also saw gains, with the iShares Bitcoin Trust ETF and smaller firms like Smarter Web Company and Metaplanet Inc. posting mid-single-digit increases. Capital B saw the largest percentage move, trading more than 10% higher at times.
Institutional demand for Bitcoin accelerated across the market, with trading desks reporting strong flows into Bitcoin ETFs. This trend has intensified as major Wall Street firms begin offering regulated crypto products.
Strategy’s rally was fueled by comments from CEO Phong Le, who affirmed the company’s long-term commitment to Bitcoin. Le stated that Strategy has no plans to sell Bitcoin except as a last resort and remains dedicated to paying dividends on its preferred shares. He emphasized the importance of maintaining dividends to prevent uncertainty within the company’s capital structure.
Addressing concerns about leverage, Le clarified that Strategy’s leverage ratio is around 12%, or 27% when preferred shares are included, well below levels seen in typical U.S. corporations. The company recently raised $1.44 billion in equity in just over a week, enough to cover nearly two years of dividend obligations.
Looking ahead, Strategy is considering participating in Bitcoin lending once large U.S. banks fully enter the space. Discussions are underway with institutions preparing to offer custody and lending services, with a focus on partnering with traditional banks that bring scale and balance-sheet strength.
Bitcoin’s own rebound was significant, with the asset trading near $91,100 late Tuesday, up 8% in 24 hours. This surge lifted Bitcoin above its seven-day high and maintained its position above last week’s low near $84,000.
Major financial institutions made aggressive moves into Bitcoin investment products, with Bank of America allowing its wealth advisers to recommend crypto exposure for the first time starting January 5. Vanguard also opened its platform to Bitcoin ETFs and crypto-linked mutual funds, providing regulated Bitcoin exposure to over 50 million brokerage clients.
Overall, the market’s positive momentum in Bitcoin-linked stocks and the broader crypto market signals growing interest and adoption of digital assets in traditional finance.
