Strategy Swings From $13B Bitcoin Loss to $1.4B Profit as BTC Clears Cost Basis

Strategy’s Bitcoin position has swung from an unrealized loss of about $13 billion in July to a paper profit of roughly $1.4 billion after BTC climbed back above the company’s average acquisition price.

Bitcoin traded around $77,000 on Friday, above Strategy’s $75,385 average cost. With 840,447 BTC on its balance sheet, the move leaves the company’s holdings worth roughly $1.4 billion more than their $63.36 billion aggregate purchase price. Bitcoin has gained nearly 22% over five consecutive sessions.

The reversal is sharp. When Bitcoin fell to around $58,000 in July, Strategy’s position carried an unrealized loss of approximately $13 billion, equal to about 20% of its cost basis. The latest rally has erased that deficit without the company adding to its Bitcoin position during the most recent reporting week.

Strategy’s Aug. 17 Form 8-K showed no Bitcoin purchases or sales between Aug. 10 and Aug. 16. Instead, the company sold $333.7 million of MSTR shares, used $132.2 million to repurchase its STRC preferred stock and added $149.1 million to its U.S. dollar reserve, which reached $4.8 billion.

That follows a period in which Bitcoin itself became part of Strategy’s funding toolkit. The company had already used bitcoin sales to fund preferred-stock distributions and STRC repurchases, including a 1,638 BTC sale disclosed earlier this month. Its current Bitcoin balance is down from 846,000 BTC at the end of the second quarter.

The improvement also lifted Strategy shares. MSTR was up about 10% in Friday premarket trading near $120, its highest level in roughly two months, as Bitcoin moved decisively through the company’s cost basis.

Strategy still has $653 million available under its preferred-securities repurchase authorization, while its $1 billion MSTR buyback program remains unused.