CoinDesk
Strategy's 840,447 BTC are now worth roughly $1.4 billion more than their $75,385 average cost basis, flipping the company back into unrealized profit after months underwater. The reversal comes as bitcoin trades around $77,000, recovering from a roughly 54% drawdown off its October all-time high of $126,000. Common stock rose 10% in Friday pre-market trading to $120, the highest level in two months.
Why it matters
The swing from a $13 billion unrealized loss in July, when bitcoin briefly touched $58,000, to a $1.4 billion paper gain today captures how aggressively the largest cryptocurrency has clawed back its late-cycle drawdown. The October peak of $126,000 still sits well above the current price, meaning Strategy is back in the green without bitcoin needing to revisit its all-time high. The company has also shifted from a defensive posture, selling around 6,916 BTC during the low-$60,000s slump, to a more constructive stance. Its US dollar reserve has climbed to $4.8 billion, enough to cover 2.8 years of dividend and other obligations.
Market impact
The bigger story for credit investors is the STRC buyback. Strategy has repurchased roughly $347 million of its perpetual preferred stock over the past four weeks, deploying more than a third of its $1 billion authorization, with purchases accelerating each week. STRC trades at $95.62, up 35% from its June low of $71. Strive Asset Management's SATA, a similar perpetual preferred structure, briefly returned to its $100 par value on Thursday for the first time in two months, suggesting the broader digital credit market is healing alongside bitcoin's price recovery.
Frequently asked questions
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How much bitcoin does Strategy (formerly MicroStrategy) own?
Strategy holds 840,447 BTC, acquired at an average price of $75,385 per coin. The position is currently worth roughly $1.4 billion more than its aggregate cost basis.
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What was Strategy's largest unrealized loss on bitcoin?
When bitcoin traded as low as $58,000 in July, Strategy's unrealized loss peaked at roughly $13 billion, equivalent to about 20.4% of the company's total bitcoin cost basis.
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What is STRC and why is Strategy buying it back?
STRC is Strategy's perpetual preferred stock. The company has repurchased roughly $347 million of STRC over the past four weeks to help restore the security back to its $100 par value.
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How much of Strategy's $1 billion STRC buyback authorization has been used?
Strategy has deployed $347 million of the $1 billion authorization over the past four weeks, with purchase pace accelerating each week as the company prioritizes restoring the perpetual preferred's price.
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What is SATA and how does it relate to digital credit?
SATA is the perpetual preferred security issued by Strive Asset Management. It briefly returned to its $100 par value on Thursday for the first time in two months, a signal that the digital credit market is healing alongside bitcoin.
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