Strategy shares soar 50% in a month as Bitcoin tops $80,000 ahead of Q1 earnings call

Strategy is on a tear.

Shares of the world's largest corporate Bitcoin holder have surged more than 50% over the past month, riding the top crypto’s climb past $80,000 as short sellers scramble for the exits and institutional money pours back in.

On Monday, MSTR jumped another 4% to nearly $184 per share, adding to a 7% surge on Friday. After-hours trading suggests the stock’s price has inched up at least another 2% ahead of Strategy’s first-quarter earnings call on Tuesday.

The rally comes amid renewed institutional demand. Bitcoin exchange-traded funds drew $827 million in the first two trading days of May alone, extending a two-month winning streak, DefiLlama data shows. Over $200 million in short positions were liquidated in a single day as the rally gathered pace.

Strategy shares are seen as a leveraged bet on Bitcoin, and the firm's stock price closely tracks the top crypto.

Bitcoin's rally above $80,000 is sound, according to Jake Kennis, senior research analyst at Nansen. He told DL News that the funding rate — a key measure of market temperature — sits at a healthy 0.00045% hourly, well below the overheated readings that typically precede a sharp correction.

"With $2.4 billion in open interest and daily perpetual volume of $3.4 billion outpacing spot turnover, derivatives are clearly playing a significant role in price discovery around this level," Kennis said. "The moderate funding rate and balanced buy/sell ratio don't indicate extreme leverage build-up…