Strategy's Bitcoin Treasury Swings Back to About $1.4B in Unrealized Gains

Strategy's Bitcoin stash has moved back into the black after the latest crypto rally. With Bitcoin trading near $78,500, the company's 840,447 BTC were showing an unrealized gain of roughly $1.4 billion, according to CoinDesk. Strategy's average purchase price is about $75,385 per Bitcoin. The shift follows a roughly 22% advance in Bitcoin over five straight sessions. It also marks a sharp reversal from July, when Bitcoin slid to around $58,000 and Strategy was carrying an estimated $13 billion unrealized loss after the asset had fallen about 54% from its October peak of $126,000. The turnaround underscores how sensitive Strategy's balance sheet is to Bitcoin's price: with more than 840,000 BTC, relatively modest moves can translate into multibillion-dollar swings in unrealized gains and losses. During the downturn, Strategy adjusted its liquidity position. Over recent months, as Bitcoin traded largely in the low-to-mid $60,000 range, the company sold about 6,916 BTC and lifted its U.S. dollar reserves to $4.8 billion. Management estimates that cash provides about 2.8 years of coverage for dividends and other financial obligations. Strategy has also been active in supporting its capital structure. Over the past four weeks, it repurchased about $347 million of its STRC perpetual preferred shares, tapping more than one-third of its authorized $1 billion buyback program. STRC has rebounded to $95.62 from a June low of $71, moving closer to its $100 par value. Equity markets tracked the crypto move. Strategy's common shares rose 12% in Friday premarket trading to $125.89, the highest level in about two months. Bitcoin clearing Strategy's $75,385 average acquisition cost ends a stretch in which the company's holdings were underwater. The return to unrealized gains also highlights the core risk of the strategy: results remain tightly linked to Bitcoin's market price, and a reversal could quickly change the picture again. At the same time, the build-up in cash and the STRC repurchases point to a broader focus on managing liquidity risk alongside Bitcoin exposure.