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Strategy Returns to Profit on Bitcoin With $1.4 Billion Gain

After five days of price recovery, Strategy’s 840,447 BTC position is back just above its purchase price. The company also boosted its dollar reserve and bought back STRC.

By Zenz van der Wielen
• 2 min read
Strategy Returns to Profit on Bitcoin With $1.4 Billion Gain

Key Takeaways

  • Strategy is back in profit on its Bitcoin position, with an unrealized gain of about $1.4 billion after Bitcoin’s price rise.
  • The company holds 840,447 BTC at an average purchase price of $75,385 each, while Bitcoin is trading around $77,000.
  • Strategy increased its dollar reserve to $4.8 billion and bought back about $347 million worth of STRC over four weeks.

Strategy is back in profit on its Bitcoin position. The company now has an unrealized gain of about $1.4 billion (€1.2 billion), or 2.4%, after Bitcoin rose for five straight days and gained nearly 22%. Strategy’s stock also reacted strongly: in pre-market trading, it was up 10% to $120 (€103), its highest level in two months.

Bitcoin Above Purchase Price

Strategy holds 840,447 BTC, bought at an average price of $75,385 (€64,500) each. With Bitcoin trading at around $77,000 (€65,900), the position is now just above the purchase price. That marks a clear recovery from earlier this year, when the company still had a large paper loss.

In July, when Bitcoin fell to around $58,000 (€49,700), that unrealized loss grew to about $13 billion (€11.1 billion). Later in the year, Bitcoin mostly traded in the low to mid-$60,000s (€51,400), a period when Strategy also sold about 6,916 BTC.

More Room on the Balance Sheet

Strategy has also increased its U.S. dollar reserve to $4.8 billion (€4.1 billion). According to the company, that is enough for 2.8 years of dividend payments and other obligations. That gives the balance sheet more room while Bitcoin’s price recovers.

The company is also trying to bring its perpetual preferred stock STRC back to its $100 (€86) par value. Over the past four weeks, Strategy bought back about $347 million (€297 million) worth of STRC, more than a third of the approved $1 billion (€0.9 billion) buyback. STRC is now trading around $95.62 (€82), about 35% above the June low of $71 (€61).

Why This Matters

For European crypto followers, this shows how large public companies keep using their Bitcoin positions as part of their balance sheets. Strategy is now the largest corporate holder of Bitcoin and owns more BTC than all national governments combined. That makes the company an important gauge of how strong demand from big players in the crypto market remains.

Strategy’s balance sheet story is not standing alone: in an earlier report, it was already described how the company expanded its dollar buffer while the Bitcoin stash stayed the same.

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