MSTR Shares Soar as Strategy's Bitcoin Position Swings Back into Profit

Strategy's Bitcoin position has swung back into profit after a sharp cryptocurrency rally, sending MSTR shares higher. The company holds 840,447 BTC purchased at an average price of $75,385.

The latest Bitcoin price move has transformed Strategy's balance-sheet exposure. When BTC fell to around $58,000 in July, the company was sitting on an unrealized loss of approximately $13 billion, or 20.4% of its Bitcoin cost basis.

Strategy responded to the downturn by becoming more flexible with its treasury, selling 6,916 BTC while Bitcoin traded mostly in the low-to-mid-$60,000 range. Its strategy now permits Bitcoin sales to fund reserves, dividends and security repurchases rather than treating the asset as strictly buy-and-hold.

The company has also built its U.S. dollar reserve to $4.8 billion, enough to cover roughly 2.8 years of dividends and other obligations. Strategy has spent about $347 million repurchasing STRC perpetual preferred stock during the past four weeks, using more than one-third of a $1 billion authorization.

For MSTR investors, Bitcoin remains the dominant variable. The recent rally shows the leverage clearly: a roughly 22% recovery in BTC turned a multibillion-dollar paper deficit into a profit and pushed Strategy shares sharply higher.