Strategy Bitcoin Holdings Swing to $1.4 Billion Unrealized Profit

Strategy (NASDAQ: MSTR) has returned to an unrealized profit on its Bitcoin holdings as a sharp cryptocurrency rally lifted the value of the company’s 840,447 BTC position above its average acquisition cost.

The company’s Bitcoin holdings were carrying an unrealized gain of roughly $1.4 billion with Bitcoin trading around $78,500, according to CoinDesk. Strategy acquired its holdings at an average price of $75,385 per Bitcoin.

The shift follows a nearly 22% increase in Bitcoin over five consecutive trading sessions, reversing some of the pressure that had weighed on Strategy’s cryptocurrency-heavy balance sheet for much of the year.

Bitcoin had fallen approximately 54% from its October peak of $126,000. When the cryptocurrency dropped to about $58,000 in July, Strategy was sitting on an unrealized Bitcoin loss of roughly $13 billion.

The latest rally therefore represents a significant change in the value of Strategy’s primary treasury asset. With more than 840,000 Bitcoin on its balance sheet, relatively modest changes in the cryptocurrency’s market price can translate into multibillion-dollar swings in the company’s unrealized gains and losses.

Strategy has also adjusted its capital position during the downturn. Over the past several months, while Bitcoin traded primarily in the low-to-mid $60,000 range, the company sold approximately 6,916 BTC and increased its U.S. dollar reserve to $4.8 billion.