Shares of Strategy ($MSTR) surged on Friday, lifting more than 25% at times to trade near $133, after a brutal prior session left the bitcoin-linked stock deeply oversold.
The jump comes as markets stabilized and bitcoin rallied from multiweek lows to around $71,000, injecting newfound demand into stocks tied to digital assets.
Friday’s rally reversed a dramatic sell-off on Thursday, which saw MSTR shares plunge to multi-year lows amid earnings losses and renewed pressure on crypto markets.
From a macro perspective, Strategy’s stock movement has followed bitcoin’s sharp swings. As the leading business holder of bitcoin, MSTR’s performance is highly correlated with BTC price action.
Declines in digital assets earlier in the week sent the stock tumbling, with bears pushing strategy prices as low as the $105 range on Thursday.
The strategy’s earnings loss
Strategy posted a loss of $12.4 billion for the fourth quarter of 2025, driven largely by unrealized declines in the value of its vast bitcoin holdings.
The overall loss dwarfed market expectations and weighed heavily on the share price, contributing to Thursday’s decline.
Despite the earnings shortfall, executives remained committed to their long-term bitcoin strategy.
Executive Chair Michael Saylor said the company is starting a Bitcoin security program to coordinate with global cyber and crypto communities, framing quantum computing as a long-term challenge unlikely to threaten Bitcoin for over a decade.
The company said quantum fears are the latest form of Bitcoin “FUD,” noting ongoing global investment in quantum-resistant security and potential protocol upgrades through broad consensus.
The strategy’s management emphasized resilience, saying the company could withstand extreme bitcoin price declines without immediate solvency problems.
Executives such as CEO Phong Le highlighted long-term strategy, ongoing capital raising and confidence that Bitcoin will emerge stronger from future technological or market challenges.
Le said Bitcoin would have to fall to around $8,000 per coin and stay at that level for five to six years before the company would have serious trouble servicing its convertible debt.
“In the extreme downside, if we were to have a 90% drop in the bitcoin price and the price was $8,000, that’s the point where our bitcoin reserve equals our net debt,” Le said. He noted that under such conditions the company could consider restructuring or raising additional capital.
At the time of writing, the price of Bitcoin is $70,040, with a 24-hour trading volume of 157 B. BTC is 7% in the last 24 hours.
It is currently -2% from its 7-day high of $71,258 and 16% from its 7-day low of $60,256. BTC has a circulating supply of 19,985,218 BTC and a max supply of 21,000,000 BTC.