Strategy has reclaimed its position as the world's largest public holder of Bitcoin, surpassing BlackRock's iShares Bitcoin Trust (IBIT) for the first time since Q2 2024. The company's aggressive accumulation strategy, including a recent purchase of 34,164 BTC—its third-largest buy ever—has pushed its total holdings to 815,061 BTC, generating approximately $3.6 billion in 'BTC Gain' in the first three weeks of April alone.

Stretch goes after Strategy income investors

Strategy, which used to be called MicroStrategy, created the public market Bitcoin treasury model that many others later followed. Its newest product, Stretch, is aimed at people looking for income. It pays monthly, offers an annualized yield of about 11.5%, and is built to stay close to its $100 par value per share.

The product is backed by Strategy’s Bitcoin holdings. It combines parts of bonds, money market funds, and Bitcoin exposure, but it does not fully fit into any one of those categories. That leaves open the question of whether it is a solid income product or something that could end badly for buyers.

On the chart, MSTR is above the SMA-20 at $133.15 and the SMA-50 at $133.60, but it is still below the long-term SMA-200 at $242.17.

The Ichimoku Kijun at $145.08 is the closest support level right now. Overbought readings are showing across the RSI at 71.95, Stoch RSI at 100.00, CCI at 268.96, and Bull/Bear Power.

The MACD and Awesome Oscillator are neutral, while the ADX stays low. Over the next five sessions, MSTR is expected to trade between $156.00 and $167.50. The main view is that the stock stays inside that range as weekly momentum weakens and buyers lose some short-term control.

The odds of a breakout above resistance are seen at under 20%, a drop below $156.00 would point bearish, but a rally above $167.50 will hand full control to the bulls.

If you're reading this, you’re already ahead. Stay there with our newsletter.