Strategy Nets $1.4 Billion Bitcoin Profit as BTC Surges 22% in 5 Days

Strategy (NASDAQ: MSTR) has returned to an unrealized profit on its Bitcoin (BTC) holdings for the first time in months, as the largest cryptocurrency climbed nearly 22% over five consecutive sessions to trade near $77,000. The company’s 840,447 BTC, acquired at an average cost of $75,385, now sit roughly $1.4 billion, or 2.4%, above their purchase price. Strategy’s common stock rose 10% in Friday pre-market trading to $120, its highest level in two months.

Bitcoin Rally Flips Strategy Into Profit

The swing back to profitability marks a sharp reversal from earlier in the year, when bitcoin fell roughly 54% from its October all-time high of $126,000. Strategy spent much of that stretch sitting on a substantial unrealized loss; when bitcoin bottomed near $58,000 in July, the paper loss stood at approximately $13 billion, equal to 20.4% of the company’s total bitcoin cost basis. The recent rally, fueled partly by renewed political momentum behind crypto-friendly legislation, has erased that gap entirely.

• Holdings: 840,447 BTC at an average cost of $75,385 per coin
• Unrealized gain: approximately $1.4 billion, or 2.4%, above cost basis
• MSTR shares: up 10% in Friday pre-market trading to $120

Capital Management Moves Continue

During the months bitcoin traded in the low-to-mid $60,000s, Strategy sold approximately 6,916 BTC as part of its broader capital framework. The company has also built its US dollar reserve to $4.8 billion, providing roughly 2.8 years of coverage for dividend payments and other fixed obligations without requiring further bitcoin sales in the near term.

STRC Buybacks Target Par Value

A key priority for Strategy has been restoring its perpetual preferred stock, STRC, to its $100 par value. The company has repurchased roughly $347 million of STRC over the past four weeks, deploying more than a third of its $1 billion buyback authorization, with purchases accelerating each week. STRC currently trades at $95.62, up about 35% from its June low of $71. A broader recovery in the digital credit market may offer additional support: SATA, the perpetual preferred security issued by Strive Asset Management (NASDAQ: ASST), briefly returned to its $100 par value on Thursday for the first time in two months.

Conclusion

Strategy’s return to an unrealized profit reflects how directly the company’s fortunes track bitcoin’s price, given its position remains fully exposed to the asset’s volatility. The five-day, 22% rally that pushed bitcoin above the firm’s $75,385 average cost basis turned a multibillion-dollar paper loss into a modest gain almost overnight, underscoring how quickly Strategy’s balance sheet can shift in either direction as bitcoin moves.