Strategy (MSTR.US) has seen its market value surge past the recent rebound in Bitcoin (BTC) around the $80,000 range, fueled by a sharp climb in its share price, signaling an initial escape from the liquidity difficulties that plagued it over the summer. Even though it hasn't restarted its Bitcoin purchase program, aggressive share issuance and buybacks of its preferred stock (STRC.US) have materially repaired its balance sheet, with market worries about its capital structure quickly fading.

Macro-level policy shifts are providing a strong external boost to crypto assets. As the U.S. Treasury announced plans to increase buybacks of long-term government bonds to ease yield pressures, the dollar weakened, accelerating Bitcoin's price recovery. At the same time, renewed optimism around U.S. cryptocurrency policies, forced liquidations of large short positions, and sustained robust demand for Bitcoin spot exchange-traded funds are all combining to drive prices higher.

Against this backdrop, Strategy (MSTR.US) shares are delivering notable excess returns. On August 18, MSTR (MSTR.US) closed at $92.52, but by Tuesday's close, it had climbed to $126.79, a single-week gain of 37%. In comparison, Bitcoin rose from around $64,700 to the $79,000-$80,000 range during the same period, an increase of roughly 22%. This divergence between the stock and the coin reflects easing investor skepticism about Strategy (MSTR.US)'s financing model, while also highlighting the logic behind a revaluation of its asset value. Earlier, the company spent the summer trying to rebuild liquidity as falling Bitcoin prices strained its preferred share obligations, but the rise in its existing holdings' value has now translated into over $3 billion in unrealized gains on the balance sheet, providing a safety cushion for future moves.

However, this recovery isn't driven by fresh Bitcoin accumulation; it's rooted in a careful balance of financing strategies. Since implementing a new monetization plan in May 2026, Strategy (MSTR.US) has sold a cumulative 6,948 Bitcoins, cashing out about $432.5 million. Since June, it has halted all Bitcoin purchases. Instead, its core funding channel has shifted to large-scale issuance of common stock. In the week of August 17-23 alone, Strategy (MSTR.US) sold 18.26 million MSTR (MSTR.US) shares through its at-the-market offering plan, successfully raising $2.01 billion in net proceeds.

Data compiled by Woofun AI shows that since implementing its Bitcoin-related strategy, Strategy (MSTR.US) has sold roughly 139.45 million common shares, with total proceeds reaching a staggering $42.12 billion. The core logic of this model is to avoid selling its core asset (Bitcoin) at low prices by diluting shareholder equity, thereby securing valuable liquidity. While this approach theoretically dilutes the per-share Bitcoin holdings, it has effectively alleviated immediate balance sheet pressure in the current market environment.

Strategy (MSTR.US) now reports its net leverage is near zero, a stark contrast to the highly leveraged state that triggered market panic during the Bitcoin price crash, indicating a significant rebound in the safety of its capital structure. The new funds have been precisely deployed to strengthen its preferred share structure and expand liquidity buffers. Of the $2.01 billion raised from selling MSTR (MSTR.US) shares last week, Strategy (MSTR.US) allocated $136.4 million to repurchase 1.43 million STRC (STRC.US) shares and injected $300 million into its dollar reserve account, bringing that account to $5.1 billion. The bulk of the remaining funds were placed into a new $1.59 billion dollar cash pool. Together, these two pools give Strategy (MSTR.US) a dollar liquidity buffer of roughly $6.69 billion. The $5.1 billion dollar reserve is earmarked specifically for paying preferred dividends and interest on outstanding debt, while the $1.59 billion dollar cash pool offers more flexibility for buying Bitcoin, repurchasing securities, or managing debt.

This ample liquidity has pushed Strategy (MSTR.US)'s internal dollar duration metric to about 3.9 years, meaning the time span over which its dollar assets cover fixed obligations has significantly lengthened. Notably, STRC (STRC.US) shares, which fell to $71.25 during the June market turmoil, have rebounded to around $97.20 (a gain of about 35%), though still slightly below face value. In July, Strategy (MSTR.US) stated it would increase buybacks when STRC (STRC.US) trades at a larger discount and reduce them as it nears $100, aiming to stabilize the shares near face value. Currently, STRC (STRC.US) is only about 3% away from that target.

Thanks to the Bitcoin rebound, stronger MSTR (MSTR.US) share prices, and the establishment of a $6.69 billion liquidity buffer, the pressure from early summer has largely subsided. Whether Strategy (MSTR.US) can resume Bitcoin purchases in the future will depend on the stability of MSTR (MSTR.US) share prices and the STRC (STRC.US) face value. Should the market turn down again, its accumulated cash reserves and preferred share support mechanisms will serve as a critical test of the resilience of its financing structure.