Bitcoin tops $72,000 as Strategy stock rallies on proxy trade

Bitcoin climbed to $72,000 on Aug. 20, its highest since June, as Strategy Inc. shares rallied despite a treasury position sitting below cost.

The options market is pricing a continued move higher. Heavy volume clusters at the $220 and $250 call strikes with third- and fourth-quarter 2026 expirations, according to MarketBeat options data, suggesting institutional traders expect a sharp repricing before year-end.

Strategy last added to its treasury in June, buying 24,869 BTC for $2.01 billion at an average of $80,985 per coin. The aggregate cost basis across its 843,738 BTC holdings stands near $75,700 per coin, leaving the entire position underwater at $72,000. The stock carries a beta of 3.59, which pushes Bitcoin's daily swings through to the equity with roughly three and a half times the force.

The rally tests whether Strategy can sustain its premium to net asset value while its treasury sits below cost. With a consensus price target of $239.81 and a Moderate Buy rating, the setup carries the ingredients for a short squeeze if Bitcoin extends its move. The company has not added a coin since June, leaving its next treasury action as the key event to watch.

The Proxy Trade Has Limits

Strategy's equity has traded as a leveraged Bitcoin proxy since the company began converting its balance sheet to BTC in 2020. The model worked during the 2024-2025 bull run, when the stock's premium to net asset value expanded as institutional demand for Bitcoin exposure outpaced the supply of regulated vehicles. But the current setup is different: the treasury is underwater, and the company's $58 billion market capitalization against $477.23 million in annual software sales yields a price-to-sales ratio of 121, entirely decoupled from core operations.

The dividend narrative adds another layer. Management has discussed selling treasury assets to fund a shareholder payout, which would reclassify the equity from a pure speculative instrument into an income-generating asset. That shift could unlock demand from pension funds and family offices that are currently barred from owning a non-yielding, high-volatility stock. The options chain suggests some traders are already positioning for this scenario. The company funded its June purchase through a mix of common stock and "Stretch" preferred equity, with the preferred offering drawing strong demand from institutional buyers.

What Happens Next

Bitcoin's next resistance sits at $75,000, the level where Strategy's aggregate cost basis converges. A break above that would flip the entire treasury position to a profit and likely trigger a wave of short covering in the stock. Conversely, a rejection at current levels would leave Strategy's equity exposed to the same downside that has punished the proxy trade since March.

The company's decision on whether to resume treasury purchases or initiate a dividend will determine the stock's trajectory into the fourth quarter. For now, the market is treating Strategy as a pure Bitcoin proxy, and that trade is working.

This article is for informational purposes only and does not constitute investment advice.