Strategy has moved back into profit on its Bitcoin holdings as the cryptocurrency staged a sharp recovery, giving the company an estimated unrealized gain of about $1.4 billion.
The gain represents roughly 2.4% of Strategy’s Bitcoin position after Bitcoin climbed nearly 22% over five consecutive sessions. The company currently holds 840,447 BTC, purchased at an average price of approximately $75,385 per coin. With Bitcoin trading near $77,000, the value of its holdings has moved above the aggregate purchase cost.
Strategy had spent much of the year carrying an unrealized loss as Bitcoin retreated from its October record high of around $126,000. The decline pushed the cryptocurrency down by roughly 54% from that peak. Strategy shares also gained momentum, rising about 10% in Friday’s premarket trading to around $120, their highest level in roughly two months.
Bitcoin remained in the low-to-mid $60,000 range for much of the previous few months, during which Strategy sold approximately 6,916 BTC. At the same time, the company increased its U.S. dollar reserve to about $4.8 billion. Strategy said the reserve provides approximately 2.8 years of coverage for dividend payments and other financial obligations.
The company’s Bitcoin position had faced considerably steeper losses earlier in the year. When Bitcoin dropped to around $58,000 in July, Strategy’s unrealized loss was estimated at approximately $13 billion, equal to about 20.4% of its total Bitcoin cost basis.
A major focus for Strategy has been restoring its perpetual preferred stock, STRC, to its $100 par value. The company has repurchased approximately $347 million worth of STRC during the past four weeks, using more than one-third of its $1 billion repurchase authorization. The pace of purchases has increased each week.
STRC was recently trading at about $95.62, representing a gain of roughly 35% from its June low near $71.
The broader recovery in digital credit markets could provide additional support for STRC. SATA, a perpetual preferred security issued by Strive Asset Management, briefly returned to its $100 par value on Thursday for the first time in two months, signaling improving conditions across the market for digital-asset-linked credit instruments.
The rebound in Bitcoin has therefore provided Strategy with relief on both its core cryptocurrency holdings and its broader capital-market strategy, although the company remains highly exposed to Bitcoin’s price volatility.
