Strategy Inc.'s Bitcoin Holdings Flip from $13 Billion Loss to $1.4 Billion Profit

Strategy Inc., formerly known as MicroStrategy, has seen its bitcoin holdings turn from an $8.3 billion loss to a $1.4 billion profit in just over five days, thanks to a sharp rally in the cryptocurrency.

The company owns 840,447 bitcoins, acquired at an average price of $75,385 per coin. With Bitcoin trading near $77,000, Strategy now holds an unrealized gain of roughly 2.4%, marking its first return to profitability on its bitcoin treasury in months.

Bitcoin has surged nearly 22% over the past five days, with a 20% jump over the trailing 72 hours pushing its price up from $58,000 in July, when Strategy's unrealized loss had reached approximately $13 billion, or 20.4% of the company's total bitcoin cost basis.

Strategy has been actively reshaping its balance sheet alongside the bitcoin rally, cutting its convertible debt by 18%, lifting its U.S. dollar reserves to $3.75 billion in one recent snapshot, and repurchasing shares below par value.