Bitcoin Clears $77K as Strategy Returns to Profit on Treasury Holdings

Bitcoin broke through key resistance levels and traded at its highest price since May, reaching $77,400 on Friday. The surge coincided with renewed confidence in Strategy's corporate treasury position, which had been under scrutiny after earlier Bitcoin sales.

The company's holdings of 840,447 BTC now sit above its reported cost basis of $75,385, a threshold that matters to investors watching whether the company's Bitcoin-backed capital strategy remains sustainable. This return to profit comes after Strategy sold a portion of its Bitcoin holdings in August and used the proceeds to repurchase shares of its STRC preferred stock.

Analyst William Clemente argued that the subsequent BTC price strength should reduce concerns about the long-term durability of Strategy's investment thesis. He noted that with the current price impulse, Strategy is now 'even more over-collateralized' by its BTC holdings.