MicroCloud Hologram Inc. (HOLO) rallied 6.76% to $1.8902 on Friday after disclosing that it acquired 140,268 shares of Strategy, formerly MicroStrategy, through the maturity and settlement of a structured note product. The newly acquired MSTR position was valued at approximately $15.76 million based on the previous closing price. The company said it will manage the shares as investment assets on its balance sheet and continues to evaluate Bitcoin-related assets under suitable market and regulatory conditions.
The announcement coincided with a broader recovery in Strategy-linked securities. MSTR shares climbed to a two-month high, rising 7.5% to above $120 in early trading, while the firm's Variable Rate Series A Perpetual preferred stock, STRC, moved above $96 for the first time since June. STRC had previously fallen below $70 during a selloff that raised concerns about Strategy's ability to service its roughly 11.5% APY dividend. The preferred is designed to maintain a price near $100 through a variable monthly dividend rate.
Strategy said earlier this week that it sold $333.7 million of MSTR shares between Aug. 10 and Aug. 16 while making no bitcoin purchases or sales. Of the proceeds, $52.4 million went toward STRC dividends and $132.2 million toward STRC repurchases. Strategy also increased its USD reserve to $4.8 billion. The company still holds 840,447 BTC worth approximately $65.2 billion, putting it back in unrealized profit of around $1.6 billion, according to SaylorTracker.
Bitcoin briefly pushed as high as $79,400 on Friday, supporting the recovery in bitcoin-linked equities. Strive's SATA preferred shares also returned to $100 after falling below $84 in late June. Meanwhile, TD Cowen pushed back against MSCI's methodology that could result in the removal of Strategy and other digital asset treasuries from its ACWI IMI index, arguing that those companies are operating businesses rather than passive asset vehicles.
