Strategy Inc. (NASDAQ:MSTR) shares jumped more than 6% in early trading Thursday, extending a multi-day rebound from recent 52-week lows as Bitcoin (CRYPTO: BTC) recovered and investors continued to digest the company’s new Digital Credit Capital Framework. Meanwhile, Nasdaq futures rose 0.38% and S&P 500 futures gained 0.28%.

The rally follows Strategy’s June 29 unveiling of a new capital management framework, which includes a Board-approved USD Reserve policy, a revised preferred stock dividend structure, $1 billion Digital Credit Securities buyback program, a $1 billion Class A share repurchase plan and a BTC Monetization Program.

Chief Financial Officer Andrew Kang said the framework gives the company greater flexibility to leverage its Bitcoin holdings to support digital credit operations and pursue accretive share repurchases when appropriate.

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Elevated Short Interest Imposes Potential Squeeze Pressure

Data from the last reporting period shows short interest in Strategy increasing from 37.68 million to 40.88 million shares. This short volume represents 12.11% of the company’s publicly available float.

Given the recent average daily trading volume of 22.42 million shares, short sellers would require 1.82 days to cover their positions, which could accelerate upward price pressure.

Cryptocurrencies ticked higher after Federal Reserve Chair Kevin Warsh classified inflation as “too high” at an international conference on Wednesday.

MSTR Technical Levels To Watch

From a trend perspective, MSTR is still in a clear longer-term downtrend: it’s trading 10.8% below its 20-day SMA ($110.56) and 45.9% below its 200-day SMA ($182.40). That kind of spacing typically means rallies can run into supply quickly unless price can start reclaiming moving averages in sequence.

The moving-average structure also stays bearish, with the 20-day SMA below the 50-day SMA and a "death cross" (50-day SMA below the 200-day SMA) that formed in October.

In terms of levels traders tend to watch, the 52-week low at $81.81 is the major downside reference after the June swing low, while the 20-day area is the first "prove it" zone on any bounce. The 52-week high at $457.22 (set in July 2025) underscores how far the stock has fallen and why overhead resistance can be heavy during recoveries.

MSTR Stock Price Activity: Strategy shares traded at $99, up 6%, in premarket trading on Thursday, according to Benzinga Pro data.

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