Strategy Inc. Shares Soar 14% Amid Bitcoin Treasury Overhaul

Strategy Inc., the company behind the unrelenting bitcoin accumulation strategy, saw its shares surge 14% on Monday to reach $94. This is the highest single-day gain in weeks for the company.

The increase came after Strategy unveiled a new Digital Credit Capital Framework that authorizes up to $1.25 billion in bitcoin sales to fund a newly created U.S. dollar reserve, cover preferred dividend obligations, and service debt.

The company also authorized $1 billion in common stock buybacks and $1 billion in repurchases of its preferred securities. Additionally, the Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, saw a 50 basis point increase in its annual dividend rate to 12%, effective July 1.

Strategy held 847,363 BTC as of June 28, purchased for an aggregate $64.10 billion at an average price of $75,651 per coin. With bitcoin trading near $60,000 on Monday afternoon, the company sits on an unrealized loss on its entire stack, making the new monetization framework more than just financial engineering.

The stock had been grinding lower since hitting a high near $200 earlier this year in May, pulled down by bitcoin weakness and broader risk-off pressure. Monday's bounce brought shares back above $92 intraday, with a session peak near $94.