Strategy’s 840,000 BTC Treasury Turns into $1.4 Billion Unrealized Profit

The five-day rally in Bitcoin pushed Strategy’s 840,447 BTC treasury to approximately $1.4 billion in unrealized profit.

The company’s average cost for its Bitcoin holdings stands at $75,385. As the Bitcoin price rose to approximately $77,000, Strategy’s position gained 2.4% in value, moving back into the profit zone. For much of the year, the company had been carrying unrealized losses due to the decline in Bitcoin’s price.

The market movement was also reflected in Strategy shares. MSTR stock rose 10% to $120 in Friday’s pre-market trading, hitting a two-month high. The stock completed the regular session at $123.84.

Bitcoin rally supported Strategy shares

Bitcoin surged for five consecutive days, gaining approximately 22% in value. This recovery allowed the company’s Bitcoin holdings to once again exceed their cost level. Strategy also increased its U.S. dollar reserves, held to meet liabilities, to $4.8 billion. It was stated that this amount provides approximately 2.8 years of coverage for dividend payments and other obligations.

Buybacks for the company’s perpetual preferred stock, STRC, have also accelerated. In the last four weeks, Strategy has conducted approximately $347 million in STRC buybacks. This amount corresponds to more than one-third of the company’s $1 billion buyback authorization. STRC is currently trading at $95.62, up approximately 35% compared to its June low of $71. SATA, issued by Strive Asset Management, also briefly returned to its par value of $100 on Thursday for the first time in two months.