Bitcoin Equities Jump as Strategy ($MSTR) Leads Sector Rebound

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Bitcoin Equities Jump as Strategy ($MSTR) Leads Sector Rebound

Bitcoin-linked stocks surged on Tuesday as the broader crypto market staged a sharp recovery and Bitcoin reclaimed the $91,000 level. 

Strategy was the standout mover, rising faster than both Bitcoin itself and most major tech names at times. MSTR shares climbed 8.66% at times to $186.26, lifted by heavy trading volume that exceeded 4.4 million shares.

MSTR is currently trading at $182.74.

The move slightly outpaced Bitcoin’s rebound to $91,000 and signaled renewed appetite for high-beta exposure to the digital asset through equities. 

Other crypto-adjacent stocks also advanced, including the iShares Bitcoin Trust ETF, which gained more than 7%, and smaller firms such as Smarter Web Company and Metaplanet Inc., which posted mid–single-digit gains. 

Capital B saw the largest percentage move of the group, trading more than 10% higher at times today.

The surge in Bitcoin equities came as institutional demand accelerated across the market. Trading desks reported strong flows into Bitcoin ETFs, a trend that has intensified as major Wall Street firms open the door to regulated crypto products.

Strategy won’t sell its Bitcoin

Strategy’s rally also followed new comments from CEO Phong Le, who spoke with Bloomberg about the company’s balance sheet strategy and long-term commitment to Bitcoin.

Le reiterated that Strategy has no plans to sell Bitcoin except as a last resort and said the company remains firmly committed to paying dividends on its preferred shares. 

He argued that maintaining the dividend helps prevent uncertainty from spreading through the company’s capital structure, adding that the goal is to pay it “in perpetuity,” even though the board retains the ability to pause payments.

Le addressed concerns about leverage, pushing back on the idea that the company is overextended. He said Strategy’s leverage ratio stands at roughly 12%, or 27% when preferred shares are included — far 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. 

Le said Strategy also now holds multiple years of dividend capacity in its Bitcoin reserves, reducing the risk that it would need to liquidate holdings during market stress.

The company is building a cash reserve designed to cover two to three years of dividend payments, a buffer Le expects to maintain for at least the next five to ten years. 

He again rejected the view that Strategy should be treated like a closed-end fund or ETF, arguing that the firm is a fully operational Bitcoin-focused company with employees, products and revenue, not a passive investment vehicle. 

He said the company has begun educating MSCI and other index providers on the distinction as they review whether digital-asset treasury companies should remain in major indices.

Strategy might start lending Bitcoin

Le also said MicroStrategy is evaluating opportunities to participate in Bitcoin lending once large U.S. banks fully enter the space. 

Discussions are already taking place with institutions preparing to offer custody and lending services. He emphasized that traditional banks bring the kind of scale and balance-sheet strength MicroStrategy wants in potential partners.

Bitcoin’s own rebound was decisive. The asset traded near $91,100 late Tuesday, rising 8% in 24 hours as volume approached $78 billion, one of the strongest sessions in weeks. 

The move lifted Bitcoin above its seven-day high and kept it comfortably above last week’s low near $84,000. 

The bounce came just as several major financial institutions made their most aggressive moves yet into Bitcoin investment products.

Bank of America announced that its 15,000 wealth advisers will be permitted to recommend crypto exposure for the first time. Beginning January 5, the bank will support allocations of 1% to 4% through a select group of Bitcoin ETFs, ending years of internal restrictions. 

In a separate reversal, Vanguard opened its platform to Bitcoin ETFs and crypto-linked mutual funds for the first time. 

The decision gives more than 50 million brokerage clients access to regulated Bitcoin exposure, marking a major shift for a firm that previously dismissed Bitcoin as too speculative for long-term investors.

This post Bitcoin Equities Jump as Strategy ($MSTR) Leads Sector Rebound first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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