Strategy (MSTR) stock jumped 5.1% to $135.17 after August consumer price index data eased concerns about further interest-rate increases. The stock reached an intraday high of $137 on September 11 before closing at $130.

The move followed August CPI data showing a 0.33% month-over-month increase in core inflation. The release pushed Federal Reserve rate-hike odds to 79% and added fresh volatility to crypto-linked stocks.

Bitcoin was trading near $77,000 ahead of the CPI release, under pressure from rising oil prices and elevated Treasury yields. The softer-than-feared headline reading provided some relief for risk assets, lifting MSTR more sharply than the broader U.S. indexes. The S&P 500 gained 0.9%, the Dow Jones Industrial Average rose 0.8%, and the Nasdaq Composite advanced 1.1%.

MSTR’s 52-week trading range is $81.81 to $365.21, leaving the stock well below its peak.

STRC Preferred Stock Nears Par Value

The recovery in Strategy’s STRC preferred stock has been a key development for MSTR. STRC closed at $98.64 on September 11, its highest level since June 1. The price was $1.36 below its $100 par value after a 38% increase from its record low of $71 on June 26. The approach toward par value is being watched because the analyst linked a recovery to the potential reopening of a larger preferred-equity fundraising mechanism.

Strategy has been actively repurchasing STRC. The company most recently spent $176 million on buybacks, bringing total repurchases since the program began in July to $811.5 million. Strategy has funded the purchases by selling MSTR stock and Bitcoin.

An analyst on X outlined a potential bullish case for the company. If STRC recovers to par value or moves above it, Strategy could gain access to a larger preferred-equity fundraising mechanism. That could allow the company to raise additional capital for Bitcoin purchases and potentially increase MSTR’s market-to-net-asset-value multiple.

Analysts’ Price Targets and Company Reserves

The analyst estimated MSTR’s current mNAV at 1.11x and said that a rise to 1.5x mNAV, which the analyst described as a conservative assumption, would value the stock at approximately $185 based on current NAV figures. The estimate does not include additional Bitcoin purchases that a functioning STRC capital mechanism could facilitate.

Canaccord Genuity separately raised its MSTR price target from $175 to $179, citing optimism about a potential recovery in Bitcoin’s price. The firm maintained its Buy rating.

On September 8, Strategy announced that it had doubled its authorization to repurchase digital credit securities to $2 billion. The company also reported a $5.1 billion reserve in U.S. dollars and $1 billion of capacity for MSTR stock buybacks.

Strategy’s unrealized profit on its Bitcoin holdings had fallen to $1.3 billion after the recent decline in BTC’s price.

Technically, MSTR tested resistance at its 200-day simple moving average of $138 on September 11 but failed to close above that level. Its Chaikin Money Flow reading of 0.17 indicated that buying pressure remained stronger than selling pressure. If buying activity weakens, the 100-day SMA at $126 represents the next support level. A close below $130 could expose the stock to the August 21 low of $117.

Other crypto-related stocks also posted modest gains. Coinbase (COIN) rose 1.73%, while Circle (CRCL) gained 0.31% on the day.

Source: CoinCentral