Strategy’s enormous Bitcoin position has swung back into profit after a sharp cryptocurrency rally, sending MSTR shares higher and reversing billions of dollars in paper losses accumulated earlier this summer.
The Michael Saylor-led company holds 840,447 BTC purchased at an average price of $75,385, according to CoinDesk. With Bitcoin trading around $77,000 on Friday, the position carried an unrealized gain of roughly $1.4 billion, or 2.4%.
Strategy shares jumped as much as 6% to $120, their highest level in two months, before trimming the advance after the opening bell.
Bitcoin Rally Reverses Strategy’s $13B Paper Loss
The turnaround has been rapid. Bitcoin has advanced nearly 22% over five consecutive sessions, recovering from months of weakness and briefly moving toward $80,000.
The latest Bitcoin price move has transformed Strategy’s balance-sheet exposure. When BTC fell to around $58,000 in July, the company was sitting on an unrealized loss of approximately $13 billion, or 20.4% of its Bitcoin cost basis.
Strategy responded to the downturn by becoming more flexible with its treasury. It sold 6,916 BTC while Bitcoin traded mostly in the low-to-mid-$60,000 range, a shift covered as part of its recent Bitcoin sales.
Its strategy now permits Bitcoin sales to fund reserves, dividends and security repurchases rather than treating the asset as strictly buy-and-hold. The broader treasury plan gives management more flexibility during market downturns.
Cash Reserve and STRC Buybacks Strengthen Balance Sheet
Strategy has also built its U.S. dollar reserve to $4.8 billion, enough to cover roughly 2.8 years of dividends and other obligations.
Management has simultaneously focused on supporting its STRC perpetual preferred stock. Strategy has spent about $347 million repurchasing STRC during the past four weeks, using more than one-third of a $1 billion authorization. STRC has recovered to about $95.62 from a June low near $71.
The stronger liquidity position contrasts with the pressure seen earlier this year, when Saylor defended the company’s Bitcoin treasury against concerns over debt and preferred-stock obligations.
For MSTR investors, Bitcoin remains the dominant variable. Friday’s rally shows the leverage clearly: a roughly 22% recovery in BTC turned a multibillion-dollar paper deficit into a profit and pushed Strategy shares sharply higher.
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