Strategy stock surged 22.8% on Friday as Bitcoin prices recovered from a previous drop. Executive chairman Michael Saylor reassured investors that the company’s debt covenants could withstand a 90% Bitcoin crash. The market saw a quick rebound after Thursday’s Bitcoin plunge following weak economic data.

Shares of Strategy (NASDAQ: MSTR) and Bitcoin (CRYPTO: BTC) moved in tandem on Thursday, with Strategy’s stock plummeting as Bitcoin prices fell. However, Friday saw Strategy’s stock rise by 22.8% and Bitcoin gain 10.3% by 2 p.m. ET. Despite this, Strategy’s stock remains down 71% from last summer’s peak.

Strategy has shifted its focus to being the largest corporate holder of Bitcoin and the world’s first Bitcoin treasury company. With 713,502 Bitcoins worth $49.9 billion on their balance sheet, Strategy’s stock trades at a significant discount compared to their digital holdings. Changes in Bitcoin’s price heavily influence Strategy’s stock performance.

Executive chairman Michael Saylor emphasized his long-term belief in Bitcoin’s value compared to traditional currencies. Despite Strategy’s mixed Q4 financial results, Saylor remains confident in the company’s ability to weather extreme Bitcoin price drops. The volatile relationship between Bitcoin and Strategy’s stock continues to play out in the market.

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Read more at Nasdaq: Why Strategy Stock Bounced Back Today