Bitcoin Rally Lifts Strategy Inc. Past Cost Basis
Bitcoin's 22% price surge has given its closely-held Strategy Inc. (MSTR) a significant boost, pushing its overall strategy above its cost basis. The company's shares jumped 28.8% last week, outperforming the token's gains by nearly seven percentage points. As of August 16, Strategy held approximately 840,447 BTC, valued at around $64.7 billion at Friday's closing price of $77,000.
While this represents a slim margin of just 2.2% above its reported average acquisition price of $75,385 per bitcoin, the company's balance sheet is not entirely protected from potential losses. If Bitcoin were to drop by 2.2%, the gross mark-to-market gain would be wiped out.
The market's upbeat sentiment and increased optimism over regulation have contributed to the rally, with some analysts predicting that Strategy's shares could reach $125 or even $325 in the coming months.