Strategy Inc. (NASDAQ:MSTR) stock is surging on Tuesday primarily due to a price forecast upgrade from Canaccord Genuity, a newly created $2 billion liquidity pool, and momentum from a sweeping rebound in Bitcoin (CRYPTO: BTC). The Nasdaq is up 0.52%, while the S&P 500 has gained 0.24%, and Technology is the leading sector with a 0.7% gain—supporting a bid for higher-beta names.
On Tuesday, Canaccord Genuity maintained a Buy rating on Strategy and raised its price forecast from $130 to $175.
Capital Raise and Liquidity Pool
Strategy raised $2 billion through stock sales between Aug. 17 and Aug. 23, according to a Monday 8-K filing. The company sold 18.26 million MSTR stock units, allocating $300 million to its USD Reserve, $136.4 million to repurchase 1.43 million STRC preferred shares and $1.59 billion to a new liquidity pool called USD Cash.
Management explained that USD Cash allows flexible deployment for any treasury purpose, unlike the restricted USD Reserve. Strategy now holds $6.69 billion in total dollar liquidity.
