[DigitalToday reporter Jinju Hong] Strategy's share price, helped by bitcoin's rebound, recovered about $7.8 billion in market capitalisation in two days.

On Aug. 20 (local time), blockchain media outlet Decrypt reported that buying spread across crypto-linked stocks as bitcoin regained the $72,000 level, with Strategy emerging as a key beneficiary.

Strategy stock MSTR closed at $92.52 on Aug. 18, then jumped 12.68 percent on Aug. 19 to $104.25. On Aug. 20, it traded near $113 intraday, about 22 percent above the Aug. 18 close. Based on about 384.23 million shares outstanding, market capitalisation swelled to about $43.4 billion from $35.5 billion. Tokenised stock MSTRB listed on Binance showed a similar move, trading near 112.84 USDT.

The key driver is the rebound in bitcoin's price. Bitcoin rose about 12 percent over two days, climbing as high as $72,475 intraday. Strategy currently holds 844,447 bitcoin, making it one of the most bitcoin-sensitive stocks in U.S. markets. At $72,000 per bitcoin, the holding is worth about $60.5 billion.

Early in the week, when bitcoin traded near $64,300, the same holding was worth about $54.0 billion. Even without additional purchases, bitcoin's rebound alone increased the balance-sheet value of its bitcoin assets by about $6.5 billion. As bitcoin moved closer to Strategy's average purchase price of $75,385, the unrealised loss on the position built with a total of $63.36 billion narrowed quickly.

That point further amplified the stock's strength. As bitcoin approaches the average purchase price, concerns ease that the company could sell more bitcoin to cover preferred dividends or interest costs during a prolonged downturn. The market is viewing this surge as a move driven more by balance-sheet revaluation than by new software revenue or earnings news.

Macro and regulatory expectations also overlapped with the rebound. The U.S. Treasury expanded the permitted size of long-term Treasury buybacks to at least $4.0 billion from $2.0 billion. That step temporarily lowered long-term yields and improved risk appetite. It was also influenced by U.S. President Donald Trump urging Congress again to push the Clarity Act. The bill includes measures to clarify the regulatory boundary for digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

As bitcoin broke above $70,000, short covering also continued. Traders rushed to close positions betting on a decline, triggering large liquidations that further accelerated the rise. The gains were not limited to bitcoin. Major cryptocurrencies including ether and XRP posted double-digit rises, and other crypto-sensitive stocks such as Coinbase and bitcoin miners also climbed.

Strategy also strengthened liquidity just ahead of the rebound. The company did not buy or sell additional bitcoin during the week ended Aug. 16, keeping holdings at 844,447 bitcoin. Instead, it sold about 3.46 million shares of MSTR common stock to raise $333.7 million. Of that, $149.1 million was added to dollar reserves, bringing total reserves to $4.8 billion. The company also used $52.4 million for preferred dividends and $132.2 million to redeem STRC preferred stock.

The cash build-up aims to cover preferred dividends and interest costs. As reserves rose, pressure to immediately dispose of bitcoin even during a weak market eased. The financing method, however, also left another burden. If Strategy continues to issue common stock to maintain its capital structure, bitcoin exposure per share could be diluted. That means a rise in the value of its bitcoin holdings may not directly translate into a rise in per-share value.

The focus going forward is whether bitcoin can hold above $70,000 and move closer to Strategy's average purchase price. Conversely, if bitcoin slips again or U.S. Treasury yields rise anew, and Strategy continues aggressive new share issuance, the current strong trend could weaken quickly. For now, the direct benefit from the recent crypto market rebound has been reflected most strongly in Strategy and MSTRB.