Strategy has moved back into a substantial unrealized profit on its Bitcoin treasury as the cryptocurrency’s latest rally pushed the value of its 840,447 BTC holdings above the company’s average acquisition cost. The shift comes after months of pressure on the corporate treasury strategy, while Strategy’s common stock rose 10% to $120 in Friday pre-market trading, its highest level in two months.
Bitcoin’s Rally Reverses Strategy’s Paper Losses
Strategy holds 840,447 BTC at an average acquisition price of approximately $75,385 per Bitcoin, representing an aggregate cost basis of about $63.4 billion. With Bitcoin surging above that threshold during Friday’s rally, the company’s cryptocurrency treasury swung from a substantial unrealized loss to an estimated $1.4 billion unrealized gain.
The turnaround is significant because Strategy’s Bitcoin position had been under pressure for much of 2026 as Bitcoin fell roughly 54% from its October all-time high of approximately $126,000. The latest price recovery has therefore changed the financial optics surrounding the company’s balance sheet, reducing the immediate mark-to-market pressure that had accompanied Bitcoin’s decline.
MSTR Shares Amplify the Bitcoin Recovery
Strategy’s equity market reaction was even more pronounced than the underlying cryptocurrency move. The company’s common stock rose 10% to $120 before Friday’s session, reaching its highest level in two months as investors reassessed the value of its Bitcoin-backed corporate structure.
The relationship between MSTR and Bitcoin is not one-to-one, however. Strategy’s equity is influenced by the value of its Bitcoin holdings as well as its capital structure, preferred securities, financing requirements and future capital-raising activity. That makes the stock a more complex expression of Bitcoin exposure than simply holding the cryptocurrency itself.
Capital Structure Remains Central to the Strategy
The return to profitability comes after Strategy recently adjusted how it manages its balance sheet. The company sold 1,690 BTC for $108.6 million earlier in August and used the proceeds to repurchase preferred stock, while its Bitcoin holdings subsequently remained unchanged at 840,447 BTC.
Strategy also raised approximately $333.7 million through the sale of 3.46 million common shares during the week ended August 16. It allocated $149.1 million to its dollar reserve, $132.2 million toward repurchasing STRC preferred stock and $52.4 million toward preferred dividends. The shift indicates that liquidity management has become an increasingly important component of the company’s Bitcoin strategy.
What the Profit Reversal Means for Bitcoin Investors
Strategy’s return to an unrealized gain does not eliminate the risks associated with its highly concentrated Bitcoin treasury. At an average cost of $75,385 per BTC, relatively modest changes in Bitcoin’s market price can materially alter the company’s paper gains or losses, while its obligations to preferred shareholders and other financing commitments remain independent of short-term crypto price movements.
Looking ahead, investors will be watching whether Bitcoin can remain above Strategy’s cost basis and whether the company resumes accumulating BTC after its recent period of sales and balance-sheet management. The key issue is no longer simply whether Strategy can withstand a Bitcoin drawdown, but whether its Bitcoin treasury, capital structure and equity valuation can continue reinforcing one another as market conditions evolve.
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