In brief
- Strategy is sitting on roughly $1.4 billion in unrealized gains on its Bitcoin holdings.
- The company holds 840,447 BTC acquired at an average price of $75,385.
- Bitcoin's rally follows months of pressure that pushed Strategy's position roughly $13 billion underwater in July.
Michael Saylor’s Bitcoin treasury company Strategy is back in the black on its massive Bitcoin holdings after a five-day rally pushed BTC above the company's average acquisition price.
The company holds 840,447 BTC, worth around $64.97 billion. With Bitcoin trading around $77,000, Strategy is sitting on an unrealized gain of roughly $1.4 billion, or 2.4%.
The turnaround is a sharp reversal from July, when Bitcoin fell to roughly $58,000, and Strategy's holdings were about $13 billion underwater. Bitcoin remains well below its October all-time high of $126,000.
Strategy shares rose roughly 10% in Friday pre-market trading to $120, their highest level in two months.
The rebound follows a shift in how Strategy manages its Bitcoin treasury. The company has sold 6,948 BTC for roughly $432.5 million since May after years of Executive Chairman Michael Saylor championing a "never sell" approach.
Strategy sold 1,690 BTC for $109 million during the week ending August 9, using the proceeds to repurchase STRC, its variable-rate perpetual preferred stock. The sale reduced its holdings to 840,447 BTC.
Strategy stopped selling Bitcoin the following week, instead raising $334 million through MSTR share sales. The company used the proceeds for preferred dividends, STRC buybacks and its dollar reserve, which increased to $4.8 billion.
The turnaround comes as Bitcoin has surged nearly 23% over five consecutive days, its strongest run in months, after spending much of the summer trading in the low-to-mid $60,000 range.
Bitcoin's rally accelerated this week after President Donald Trump on Wednesday urged Congress to advance the Clarity Act, which would establish a federal framework for digital assets and divide oversight between the Commodity Futures Trading Commission and the Securities and Exchange Commission.
On Thursday, CFTC Chair Michael S. Selig said that he directed staff to prepare crypto market structure rules in case Congress fails to pass the legislation.
"If Clarity continues to stall because of Democrat obstruction, the CFTC will utilize its existing authorities to begin establishing a regime for crypto asset markets," he said.