Bitcoin Price Surges Past $77,000 as Strategy's Corporate Treasury Returns to Profit

Bitcoin (BTC) surged to $77,000 on Friday, marking its highest price since May 26. This milestone is significant for Strategy's corporate treasury, which has returned to profit with its BTC holdings.

The company's cost basis for its 840,447 BTC is at $75,385, resulting in a year-to-date gain of approximately $450 million, according to data from BitcoinTreasuries. This follows Strategy's decision to sell a small portion of its treasury worth 1,690 BTC between August 3 and 9 to repurchase 1.15 million shares of its STRC preferred stock for $108.6 million.

Independent crypto analyst William Clemente commented on X that the sales should alleviate concerns over the long-term viability of Strategy's Bitcoin investment thesis. He noted that after the price run-up, the company is 'even more over-collateralized by their BTC holdings.'

A new safety net has formed below $70,000, with 3.44 million BTC having an onchain cost basis between $58,000 and $67,000. This includes 2.23 million BTC, equal to around 11% of the total supply, added over the past 11 weeks.

Strategy's CEO Phong Le stated earlier in August that the company would return to buying Bitcoin before the end of the year. The current price break above $77,000 suggests that this target may be within reach.