Strategy’s Bitcoin Holdings Jump $1.4B as BTC Price Surges

Strategy’s common shares gained 10% in Friday’s premarket session, reaching $120, their highest price in about two months.
Strategy has moved back into positive territory on its Bitcoin holdings, with an estimated unrealized profit of around $1.4 billion, or 2.4%, as BTC climbed nearly 22% across five consecutive trading days.
The company holds 840,447 BTC, purchased at an average cost of approximately $75,385 per coin, while Bitcoin is currently trading near $77,000.
For much of the year, Strategy’s Bitcoin position remained underwater after BTC dropped roughly 54% from its October record of about $126,000. The latest rebound has now pushed the company back into unrealized profit.
Bitcoin spent much of the past several months trading in the low-to-mid $60,000 range, during which Strategy sold approximately 6,916 BTC. The company has also built its cash reserve to $4.8 billion, enough to cover dividends and other financial commitments for an estimated 2.8 years.
When Bitcoin fell to around $58,000 in July, Strategy’s unrealized loss on its holdings reached approximately $13 billion, representing about 20.4% of the total cost of its Bitcoin portfolio.
One of Strategy’s major objectives has been bringing its perpetual preferred stock, STRC, back toward its $100 par value.
Over the past four weeks, Strategy has spent about $347 million repurchasing STRC, using more than one-third of its $1 billion buyback authorization. The pace of those purchases has increased each week.
STRC is currently trading around $95.62, roughly 35% above its June low of $71.
A recovery in the broader digital credit market could provide additional support for STRC. SATA, the perpetual preferred security issued by Strive Asset Management, briefly climbed back to its $100 par value Thursday for the first time in two months.