Why Strategy Stock Soared This Week

Source The Motley Fool

Strategy (NASDAQ: MSTR) stock posted strong gains over the last week of trading despite volatility. The company's share price closed out the period up 11.8%, according to data from S&P Global Market Intelligence.

Strategy stock surged in this week's trading after President Trump confirmed plans to include Bitcoin in a U.S. digital asset reserve. Strategy's core growth bet revolves around buying and holding Bitcoin, and the positive valuation catalyst for the cryptocurrency helped send the company's stock higher.

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Strategy stock surged on U.S. crypto asset reserve news

Last Sunday, President Trump said that his administration was looking into the foundation of a digital-asset reserve that would include Bitcoin, Ethereum, Solana, Cardano, and XRP. The news helped spur valuation gains for each of these tokens, and it also powered a jump for Strategy's share price. Strategy stock is now down roughly 1% across 2025's trading. Meanwhile, Bitcoin is down approximately 6% across that stretch.

What's next for Strategy?

At a White House summit on digital assets yesterday, Trump reaffirmed support for the cryptocurrency industry and plans for the establishment of a U.S. digital asset reserve. The summit occurred shortly after Trump signed an executive order yesterday creating the U.S.' first digital asset reserve, with 200,000 Bitcoin serving as its foundational holdings.

While the initial Bitcoin tokens for the reserve were acquired through legal seizures in court proceedings, Trump's executive order also encouraged the Treasury and Commerce departments to find "budget-neutral" ways to purchase more of the cryptocurrency. Federal support and purchases for Bitcoin could be a significant bullish catalyst for the token, and that's good news for Strategy. On the other hand, investors should still understand that the stock is a high-risk stock.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Cardano, Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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