Why is Strategy stock rallying today?

Strategy Inc's stock surged 5.8% in early trading as Bitcoin reached above $84,000 for the first time since January, sparking a broader crypto rally. This came after the SEC granted a five-year exemption for select platforms to trade tokenized U.S. stocks on-chain without registering as traditional exchanges. The news triggered a short squeeze across crypto assets, pushing Bitcoin through key resistance levels.

Exec Chairman Michael Saylor hinted on social media that Strategy might resume Bitcoin purchases after a recent pause, having last added 4,603 Bitcoin on August 31. Currently, Strategy holds around 845,050 Bitcoin at an average cost of $75,412 per coin. Additionally, a House Financial Services Committee vote on September 16 advanced a bill for a Strategic Bitcoin Reserve, providing regulatory support for crypto-linked equities.

Analysts have maintained or raised price targets for MSTR, with the consensus near $230, well above current levels. The NASDAQ, S&P 500, and Dow Jones are also up, creating a favorable environment for high-beta assets like MSTR. U.S. spot Bitcoin ETFs saw strong weekly inflows, indicating growing institutional interest in crypto.

Overall, the combination of Bitcoin's price rise, Saylor's purchase signal, pro-crypto regulations, and ETF inflows has driven MSTR's rally today.