Strategy (NASDAQ:MSTR) shares jumped 10.9% in pre-market trading on Friday after Bitcoin surged above $70,000 overnight, reaching its highest level since early June 2026 and triggering strong gains across cryptocurrency-linked equities.
Strategy remains one of the stock market’s most closely watched proxies for Bitcoin because of its substantial exposure to the cryptocurrency, leaving its shares particularly sensitive to sharp movements in the digital asset.
The rally pushed MSTR to $124.60 in pre-market trading from a previous close of $112.39.
Treasury action and White House crypto talks boost Bitcoin
Bitcoin’s breakout was supported by a combination of improving liquidity expectations and favourable political signals from Washington.
The US Treasury announced plans to at least double its longer-term bond buyback operations to a minimum of $4 billion per transaction. The move helped ease pressure on Treasury yields and contributed to a more supportive environment for risk assets.
Sentiment was further strengthened by President Donald Trump’s meeting with cryptocurrency industry executives, reinforcing expectations of a more favourable US policy environment for digital assets.
Together, the developments helped drive Bitcoin around 8% higher in a single session.
Crypto short squeeze accelerates Bitcoin rally
The sharp rise in Bitcoin also triggered approximately $1.44 billion of forced short liquidations across cryptocurrency markets.
As traders betting on lower crypto prices were forced to close their positions, additional buying pressure accelerated Bitcoin’s move above $70,000.
The cryptocurrency also broke above its 200-day moving average, adding a significant technical component to the rally and strengthening bullish momentum.
Strategy capital moves add to investor confidence
Strategy’s recent corporate actions have provided another source of support for its shares.
The company has been actively managing its capital structure, including the repurchase of approximately 288,930 shares of its variable-rate Series A preferred stock at an average price of around $86.52.
Strategy has also signalled a target trading level near $100 for the preferred shares while maintaining a 12% dividend, measures that investors have interpreted as evidence of continued balance-sheet discipline.
Analysts at Clear Street, Benchmark and B. Riley recently lowered their price targets following Strategy’s second-quarter results, but all three retained Buy recommendations. The consensus target remains comfortably above the stock’s current trading level.
Crypto-linked shares rally alongside Strategy
Strategy was not alone in benefiting from Bitcoin’s breakout. Coinbase (NASDAQ:COIN), MARA Holdings (NASDAQ:MARA) and Robinhood (NASDAQ:HOOD) also advanced in pre-market trading, pointing to a broader re-rating of cryptocurrency-related equities.
US markets provided an additional supportive backdrop. The S&P 500 and Dow Jones were both up around 0.3%, while the Nasdaq gained 0.5%, as lower Treasury yields and a weaker dollar encouraged greater appetite for risk.
The combination of Bitcoin’s move above $70,000, significant short liquidations, positive political signals towards cryptocurrency and Strategy’s own capital-management measures sent MSTR sharply higher before the opening bell.
Despite reaching $124.60, however, the shares remain well below their 52-week high of $365.21, leaving Strategy’s performance highly dependent on the direction of Bitcoin and broader cryptocurrency market sentiment.
Strategy stock price
