Strategy stock jumps 7% as Bitcoin tops $71,000 after crypto summit

Bitcoin rose 3.46% to $71,700 on Thursday, lifting Strategy (MSTR) shares 6.72% to $111.26 after President Donald Trump hosted a White House crypto summit.

Trump urged Congress to pass the CLARITY Act, telling executives the legislation "will keep us ahead of China, keep us ahead of everyone else."

The move marked Bitcoin's first break above $70,000 since early June, with the token up 11.5% from Tuesday. Ether climbed 18.3% to $2,261.26, while Solana's SOL, XRP and DOGE rose 11.5%, 10.6% and 7.3%, respectively.

As the largest corporate Bitcoin holder with 840,447 BTC, Strategy's equity tracks spot prices in high beta. Rising valuations expand its net asset value and improve access to capital markets for further acquisitions, which CEO Phong Le said should restart later this year.

Institutional Ownership Expands to 59.84%

Sound Financial Strategies Group acquired 51,323 MSTR shares worth about $1.69 million in the second quarter, a position that now ranks as its 14th-largest investment. Binnacle Investments expanded its stake by nearly 493% in Q2, while Dogwood Wealth Management boosted its holding by 280% in Q4. Institutional investors now own 59.84% of outstanding Strategy stock.

Wall Street analysts rate the shares a Moderate Buy with a mean price target of $239.81. HC Wainwright projects $325, TD Cowen assigns a Buy with a $260 objective, and Cantor Fitzgerald rates the stock Overweight with a $186 target. Weiss Ratings downgraded MSTR to Sell in early August.

Q2 Loss Misses as Insiders Sell

Strategy's second-quarter report, published July 31, showed a $24.45 per-share loss against a $2.19 consensus projection. Revenue totaled $122.37 million, up 6.9% from a year earlier but slightly below the $122.90 million forecast. The company holds a $35.55 billion market capitalization with a beta of 3.54, and shares trade below the 200-day moving average of $128.90.

Insiders sold 165,325 shares worth more than $20.3 million over the past 90 days while buying 11,166 shares valued at about $1 million. Executive Chairman Michael Saylor said the firm may repurchase MSTR shares if they trade at a sufficient discount to its Bitcoin portfolio value. Strategy has not added to its Bitcoin holdings for seven consecutive weeks, directing $333.7 million raised from stock sales in Q2 toward preferred dividends and STRC buybacks instead.

MSCI has suggested excluding Strategy from certain global investable indexes, which could reduce passive fund demand for the shares.

Bitcoin's break above $71,000 came alongside $500 million in net inflows into spot Bitcoin ETFs, a three-month high, as the Treasury's bond buyback program and the SEC's passage of crypto asset regulations added liquidity. Analysts see potential for the token to push toward $80,000, which would further lift Strategy's net asset value and its ability to resume Bitcoin purchases.

This article is for informational purposes only and does not constitute investment advice.