On Tuesday, stocks related to Bitcoin saw significant gains as the overall cryptocurrency market staged a robust recovery, with Bitcoin surpassing the $91,000 mark.
Strategy emerged as the top performer, outpacing both Bitcoin and most major tech stocks at times. MSTR shares surged by 8.66% to $186.26, driven by a substantial trading volume exceeding 4.4 million shares.
Currently, MSTR is trading at $182.74.
This movement slightly eclipsed Bitcoin’s climb to $91,000, indicating a renewed interest in high-risk investments in digital assets through equities.
Additionally, other crypto-related stocks showed upward trends, including the iShares Bitcoin Trust ETF, which increased by more than 7%, along with smaller firms like Smarter Web Company and Metaplanet Inc., which experienced mid-single-digit increases.
Capital B recorded the highest percentage increase within the group, trading over 10% higher at certain points today.
The rise in Bitcoin equities coincided with a growing institutional demand across the market. Trading desks reported strong inflows into Bitcoin ETFs, a trend that has intensified as major Wall Street firms embrace regulated crypto products.
Strategy will retain its Bitcoin
The rally of Strategy also followed recent remarks from CEO Phong Le, who discussed the company’s balance sheet strategy and long-term dedication to Bitcoin in an interview with Bloomberg.
Le affirmed that Strategy has no intention of selling Bitcoin unless absolutely necessary, stating that the company remains committed to distributing dividends on its preferred shares.
He contended that upholding the dividend helps mitigate uncertainty within the company’s capital structure, asserting the goal is to pay it “in perpetuity,” despite the board’s ability to pause payments.
Le addressed concerns regarding leverage, countering the notion that the company is overstretched. He indicated that Strategy’s leverage ratio is approximately 12%, or 27% when including preferred shares — significantly lower than levels typically seen in U.S. corporations.
The company recently secured $1.44 billion in equity within just over a week, sufficient to cover nearly two years of dividend obligations.
Le added that Strategy now possesses several years’ worth of dividend capacity within its Bitcoin reserves, mitigating the risk of needing to liquidate holdings during market fluctuations.
The firm is establishing a cash reserve intended to cover two to three years of dividend payments, which Le expects to maintain for at least the forthcoming five to ten years.
He reiterated that Strategy should not be viewed as a closed-end fund or ETF, arguing that the firm operates as a fully functional Bitcoin-focused company with employees, products, and revenue, rather than a passive investment entity.
He noted that the company has begun informing MSCI and other index providers about this distinction as they assess whether digital-asset treasury companies should remain included in major indices.
Strategy considers Bitcoin lending
Le also mentioned that MicroStrategy is exploring opportunities to engage in Bitcoin lending as large U.S. banks fully enter this sector.
Discussions are already underway with institutions planning to offer custody and lending services. He emphasized that traditional banks possess the scale and balance-sheet strength MicroStrategy seeks in potential partners.
Bitcoin’s own recovery has been significant. The asset traded around $91,100 late Tuesday, climbing 8% within 24 hours as trading volume approached $78 billion, marking one of the most vigorous sessions in recent weeks.
This surge lifted Bitcoin above its seven-day high and kept it securely above last week’s low near $84,000.
The rebound coincided with several major financial institutions making their strongest moves yet into Bitcoin investment products.
Bank of America announced that its 15,000 wealth advisers will now be allowed to recommend crypto exposure for the first time. Starting January 5, the bank will facilitate allocations of 1% to 4% through a select group of Bitcoin ETFs, ending years of internal prohibitions.
In another development, Vanguard has opened its platform to Bitcoin ETFs and crypto-linked mutual funds for the first time.
This decision provides over 50 million brokerage clients access to regulated Bitcoin exposure, representing a significant shift for a firm that previously viewed Bitcoin as too speculative for long-term investors.
