Buying Bitcoin Helped Strategy Stock to Big Gains. Can Selling It Do the Same?

Strategy said it may sell bitcoin to build up its cash reserves, fund its preferred stock's dividends, and buy back those shares along with its common stock.

The news helped Strategy's shares gain ground Monday after a bruising week.

A bitcoin whale is hawking its crypto. Today, investors see it as good news.

Strategy (MSTR), the enterprise software company known for buying bitcoin, is now poised to sell $1.25 billion worth, equivalent to roughly 21,000 coins at recent prices. The announcement, made Monday—a time when the company customarily announces bitcoin purchases—appears to be working in its favor: Its common stock, along with its "Stretch" preferred stock, also known as "STRC," are up more than 12%, while the price of bitcoin was recently drifting toward $60,000.

The company's bitcoin "monetization program" lands after Strategy's stock and its preferreds took a beating last week as the price of bitcoin fell to fresh lows. The stock tumbled to levels last seen in 2024, while STRC slid almost 30% under its par value. Now the company appears to be working to shore up its array of crypto-linked securities.

Strategy's just-announced plans to sell more of its bitcoin stash co

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/crypto/articles/buying-bitcoin-helped-strategy-stock-175116513.html)