Strategy sits on $1.4 billion profit on bitcoin holdings as price surges

Strategy MSTR$123.69·At close is back in profit on its bitcoin $BTC$75,582.18 holdings, with an unrealized gain of roughly $1.4 billion, or 2.4%, as the largest cryptocurrency added almost 22% in five straight days of advances .

The company owns 840,447 $BTC, acquired at an average price of $75,385, compared with bitcoin’s current price of about $77,000.

Strategy had been sitting on an unrealized loss for much of the year as the price of the largest cryptocurrency fell roughly 54% from its October all-time high of $126,000. The company’s common stock rose 10% in Friday pre-market trading to $120, its highest level in two months.

Bitcoin traded in the low to mid-$60,000s for much of the past few months, a period during which Strategy sold around 6,916 $BTC. The company has also increased its U.S. dollar reserve to $4.8 billion, providing 2.8 years of coverage for dividend payments and other obligations.

When bitcoin traded as low as $58,000 back in July, that unrealized loss was about $13 billion, equivalent to 20.4% of the company’s total bitcoin cost basis.

A key priority has been restoring the company’s perpetual preferred stock, STRC, to its $100 par value. Strategy 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 is currently trading at $95.62, up roughly 35% from its June low of $71.

Another potential tailwind for STRC is the recovery in the broader digital credit market. SATA, the perpetual preferred security issued by Strive Asset Management (ASST), briefly returned to its $100 par value on Thursday for the first time in two months.