Strategy Sits on $1.4 Billion Bitcoin Profit After 20% Surge

Strategy Inc. (NASDAQ:MSTR) has made a significant turnaround in its Bitcoin holdings after a 20% surge in price over the last 72 hours. The company's unrealized gain on its 840,447 BTC is now approximately $1.4 billion, up from an earlier loss of $13 billion.

According to CoinDesk, Strategy acquired its BTC at an average price of $75,385 per coin. With Bitcoin trading near $77,000, the company's profit margin is around 2.4%. This marks a significant shift from the low point in July when BTC traded at $58,000 and Strategy's unrealized loss had reached $13 billion.

While Bitcoin was down, Strategy sold approximately 6,916 BTC and built its US dollar reserve to $4.8 billion, providing 2.8 years of coverage for dividend payments and other obligations. The company has also been focusing on restoring its perpetual preferred stock STRC to its $100 par value.

Strategy's repurchase of roughly $347 million of STRC over the past four weeks is a key part of this effort, with purchases accelerating each week. A potential additional tailwind for MSTR could come from the broader digital credit market recovering alongside Bitcoin.