Strategy Stock Soars on Bitcoin Rally and Analyst Optimism

Strategy shares surged 12.74% Friday, fueled by a Bitcoin price surge above its cost basis and a major price target upgrade from B. Riley. The company also seeks to stabilize its preferred stock dividends.

Strategy shares surged dramatically to close out the week, propelled by a powerful combination of a rising Bitcoin price and renewed confidence from Wall Street. The stock jumped 12.74 percent on Friday to finish at 139.48 euros, capping a weekly gain of nearly 28 percent.

The rally was ignited by a significant upgrade from analysts at B. Riley. The investment bank raised its price target for Strategy from $175 to $188, reiterating its buy rating on the stock. This vote of confidence arrived as the broader market environment turned more favorable. Reports of eased tensions in the Strait of Hormuz increased the probability of a Federal Reserve rate cut this year to nearly 50 percent, creating a tailwind for risk-sensitive assets.

A concurrent surge in Bitcoin provided the fundamental fuel for the move. The cryptocurrency climbed roughly 4 percent in a single day to around $77,400. This price action pushed Strategy’s massive treasury of approximately 781,000 Bitcoin back into a paper profit position for the first time since February. The company’s average cost basis for its holdings is $75,577 per coin. The total value of its Bitcoin reserve now stands at approximately $60.5 billion.

Despite the strong weekly performance, the stock remains deeply in negative territory on a year-to-date basis, down almost 50 percent. It is also still more than 64 percent below its 52-week high of 391.80 euros. The recent advance, however, represents a clear recovery from its yearly low of 90.74 euros.

Beyond the crypto market, the company’s management is taking steps to stabilize its capital structure. Strategy has filed a proxy statement seeking shareholder approval to change the dividend frequency on its preferred stock from monthly to semi-monthly. The annual dividend rate would remain fixed at 11.5 percent. Management aims to reduce the volatility of these securities, which recently saw swings of 2.1 percent compared to spikes of 13 percent earlier this year. A more stable price near their $100 par value supports the company’s ongoing capital markets program. Shareholders will vote on the proposal by June 8, with the first semi-monthly payment scheduled for July 15.

Investor attention now shifts to the company’s operational performance. Strategy, which will operate under its current name until August 2025 before shedding the "MicroStrategy" moniker, continues its dual focus on AI-powered analytics software and Bitcoin acquisition. The management team has scheduled a video webcast to present detailed first-quarter 2026 results, which will provide crucial data on the software division’s health and the exact status of the Bitcoin treasury.

Technical indicators present a mixed picture. While Bitcoin’s Relative Strength Index (RSI) sits near 75, signaling potentially overbought conditions, Strategy’s own 14-day RSI reads a more neutral 37. The upcoming shareholder vote and Bitcoin’s ability to hold above the $75,577 cost basis will be the next key tests for the stock’s recovery.