Strategy Shares Surge Amid Bitcoin Rally And Trump's Crypto Plans

According to Cointelegraph, shares of Strategy, previously known as MicroStrategy, experienced a significant increase on March 3 as investors responded to a Bitcoin rally driven by U.S. President Donald Trump's announcement of plans for a U.S. crypto reserve. The stock rose by up to 15%, reaching $295.10, as reported by Yahoo Finance. Prior to this, Strategy's stock had been in a two-week decline, losing over 24% of its value. Despite the recent surge, Strategy's stock remains 51% below its peak in 2024. Since the company began accumulating Bitcoin in 2020, it has effectively become a proxy for Bitcoin trading. Strategy has amassed an impressive 499,096 BTC, making it the largest corporate holder of Bitcoin globally. Although the company has been aggressively purchasing Bitcoin in recent months, it did not take advantage of the recent dip in Bitcoin prices. Strategy's strategic investment in Bitcoin has positioned it as one of Wall Street's top performers. Over the past year, the company's stock has increased by 156% and has surged more than 1,800% since its initial Bitcoin acquisition in August 2020. Bernstein analyst Gautam Chhugani noted that Strategy is a significant beneficiary of the Bitcoin reserve, which will predominantly consist of Bitcoin. The rally in Strategy's stock followed a major reversal in the crypto market, with Bitcoin rebounding from a low of approximately $79,000 to a weekend high exceeding $95,000. The primary catalyst for this reversal was President Trump's social media announcement regarding the establishment of a "U.S. Crypto Reserve." On March 2, President Trump stated that the reserve would "elevate this critical industry after years of corrupt attacks by the Biden administration," and would include cryptocurrencies such as XRP, Solana, Cardano, Bitcoin, and Ether. The Trump administration is set to host the inaugural White House crypto summit on March 7, focusing on regulations, stablecoins, and the potential role of Bitcoin in the financial system. Meanwhile, the U.S. Securities and Exchange Commission's newly formed Crypto Task Force has been engaging with various companies to discuss regulatory issues and common industry challenges.