The stock of MicroStrategy, now operating under the name Strategy, saw a notable increase of 8.85% on Friday, closing at $133.88. This surge occurred amidst a significant rebound in the price of Bitcoin (BTC), which rose nearly 5% late in the trading session. The price movement followed the release of January U.S. inflation data, which came in slightly below expectations, instilling a sense of optimism among traders regarding potential interest rate cuts in the future.
At the time of reporting, Bitcoin was trading at $69,701, according to information from CoinMarketCap. The trading session for Strategy was marked by high activity, with around 24.6 million shares changing hands. Despite this positive price action, the overall sentiment in the market remains cautious. Since reaching a high on October 6, Bitcoin has experienced a nearly 50% drop, and U.S. spot Bitcoin ETFs have faced significant outflows totaling approximately $12 billion since November 2025.
MicroStrategy has reaffirmed its commitment as a long-term holder of Bitcoin. On the same day, the company released a free writing prospectus for its “STRC” preferred stock, which offers an 11.25% annualized dividend for February, with cash distributions set to follow. The SEC filing indicates that this preferred stock is aimed at maintaining a price around $100 per share, adjusting the dividend monthly to stabilize it. Shareholders on record as of February 15 are scheduled to receive their dividends on February 28.
Despite the current optimism, concerns linger about the sustainability of this rebound. Veteran trader Peter Brandt has voiced apprehensions regarding the resilience of MicroStrategy”s investors. He raised questions about when investors might consider distancing themselves from the company”s aggressive Bitcoin acquisition strategy. Brandt”s analysis included a bearish chart indicating that Bitcoin could be on the verge of breaking a crucial support level, potentially leading to a substantial price decline toward $54,059.60.
Such a decline would significantly impact MicroStrategy”s holdings, potentially putting them billions of dollars underwater. However, CEO Michael Saylor remains unfazed by speculation about having to sell assets, emphasizing the company”s strong leverage ratio and substantial reserves. “That”s an unfounded concern,” Saylor stated. “We”ve got 50 years” worth of dividends in Bitcoin. We”re not going to be selling; we”re going to be buying Bitcoin.” His commitment to acquiring more Bitcoin each quarter reflects a long-term bullish outlook on the cryptocurrency.
