MSTR surged 37% to outperform BTC, and Strategy (MSTR.US) resolved the liquidity crisis by issuing shares to buy back preferred shares

According to Woofun AI, Strategy (MSTR.US)'s market capitalization performance has quietly surpassed the rebound of Bitcoin (BTC) in the $80,000 range due to a sharp rise in stock prices in the short term, marking the company's initial exit from the summer liquidity difficulties.

Although the Bitcoin purchase program has yet to be restarted, its balance sheet structure has been substantially repaired through aggressive share issuance financing and preferred stock (STRC.US) repurchase operations, and market concerns about its capital structure are rapidly fading away.

The macro-level policy shift has given crypto assets a strong external driver. As the US Treasury announced an increase in repurchases of long-term government bonds to ease pressure on yields, the trend of the US dollar weakened, which in turn accelerated the recovery of Bitcoin prices.

At the same time, optimism about the US cryptocurrency policy is once again heating up, and a large number of short positions have been forcibly liquidated, compounded by the continued strong market demand for Bitcoin spot trading funds, which together form multiple drivers for price increases. In this context, Strategy (MSTR.US)'s stock price performance showed significant excess earnings. On August 18, MSTR (MSTR.US) closed at $92.52 and climbed to $126.79 by Tuesday's close, a weekly increase of 37%. In contrast, the price of Bitcoin rose from around $64,700 to the $79,000-$80,000 range over the same period, an increase of around 22%.

This divergence between stock prices and currency prices not only reflects the easing of investors' doubts about the Strategy (MSTR.US) financing model, but also highlights the logic of revaluing its assets. Previously, due to pressure on preferred stock obligations due to falling Bitcoin prices, the company worked throughout the summer to restore liquidity, but the increase in the value of its existing holdings had translated into unrealized earnings of over $3 billion on the balance sheet, providing a safety cushion for subsequent operations.

However, this recovery was not due to new Bitcoin fundraising, but was based on deep trade-offs in financing strategies. Since implementing the new monetization plan in May 2026, Strategy (MSTR.US) has sold a total of 6,948 bitcoins and cashed out approximately US$432.5 million; since June, the company has stopped all bitcoin purchases. Instead, its core channel of funding has turned to large-scale issuance of common shares. In the week of August 17-23 alone, Strategy (MSTR.US) sold 18.26 million MSTR (MSTR.US) shares through a market trading plan, successfully raising $2.01 billion in net capital.

According to data compiled by Woofun AI, Strategy (MSTR.US) has sold approximately 139.45 million shares of common stock since implementing the Bitcoin-related strategy, and the total amount raised has reached an astonishing $42.12 billion. The core logic of this model is to avoid selling core assets (Bitcoin) at a low level by diluting shareholders' equity in exchange for valuable liquidity.

Although this operation would theoretically dilute the amount of bitcoins held per share, in the current market environment, it has effectively relieved the immediate pressure on the balance sheet. Strategy (MSTR.US) has now revealed that its net leverage ratio is close to zero. This is in stark contrast to the high leverage state that caused market panic during the Bitcoin price crash, indicating that the security of its capital structure has greatly improved.

The newly raised capital was accurately used to consolidate the preferred stock structure and expand the liquidity buffer. Of the $2.01 billion raised last week through the sale of MSTR (MSTR.US) shares, Strategy (MSTR.US) allocated $136.4 million to repurchase 1.43 million STRC (STRC.US) shares, while injecting $300 million into the dollar reserve account to reach $5.1 billion. Most of the remaining funds were added to a new $1.59 billion cash pool. Together, these two major pools provided Strategy (MSTR.US) with a liquidity buffer of around $6.69 billion. Of this, the $5.1 billion reserve fund is earmarked to pay dividends on preferred shares and interest on outstanding debts; while the $1.59 billion cash pool is more flexible and can be used to buy Bitcoin, buy back securities, or manage debt. Adequate liquidity raised Strategy (MSTR.US)'s internal dollar long-term indicator to about 3.9 years, which meant that the time span for its dollar assets to cover fixed debt was significantly extended.

Notably, STRC (STRC.US) shares fell to $71.25 during the market turmoil in June, and although they have now recovered to around $97.2 (an increase of about 35%), they are still slightly below face value. Strategy (MSTR.US) made it clear in July that when STRC (STRC.US) is heavily discounted, it will increase repurchases and reduce repurchases when it is close to $100, with the aim of stabilizing it near face value. Currently, STRC (STRC.US) is only about 3% off target. Thanks to Bitcoin's rebound, MSTR (MSTR.US) stock price strengthening, and the establishment of a $6.69 billion liquidity buffer, the pressure in the early summer has abated significantly. Whether Strategy (MSTR.US) can resume Bitcoin purchases in the future will depend on the stability of MSTR (MSTR.US) stock price and STRC (STRC.US) face value; if the market declines again, its accumulated cash reserves and preferred stock support mechanisms will be a key litmus test for the resilience of its financing structure.