Strategy Swings From $13 Billion Bitcoin Loss to $1.4 Billion Profit as BTC Rally Lifts Shares

Strategy’s bitcoin treasury flipped from a roughly $13 billion unrealized loss to gains of about $1.4 billion as bitcoin (BTC) climbed back above the company’s average acquisition price, lifting its shares to a two-month high. (Decrypt)

The largest corporate bitcoin holder now sits on 840,447 BTC acquired at an average cost of $75,385, according to Decrypt. With BTC trading around $77,000 to $79,400 on Friday, those holdings are worth roughly $65 billion. The Block, citing SaylorTracker, puts the unrealized profit slightly higher at around $1.6 billion. Figures differ by about $200 million. Intraday price swings between the two reports likely account for the gap. (The Block)

The reversal is steep. In July, bitcoin fell to roughly $58,000 and pushed Strategy’s holdings about $13 billion underwater. The asset has since surged nearly 23% over five consecutive days. That marks its strongest run in months after a summer stuck in the low-to-mid $60,000 range. (Decrypt)

The rally accelerated after President Trump urged Congress to advance the Clarity Act on Wednesday. CFTC Chair Michael S. Selig said Thursday he directed staff to prepare crypto market structure rules in case Congress fails to pass the legislation. “If Clarity continues to stall because of Democrat obstruction, the CFTC will use its existing authorities to begin establishing a regime for crypto asset markets,” Selig said. (Decrypt)

Strategy shares climbed roughly 7.5% to above $120 in early Friday trading. That is their highest level in two months, according to The Block. Decrypt reported a steeper pre-market gain of about 10% to the same level.

STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, climbed above $96 for the first time since June. The shares carry an annualized dividend of about 11.5% and are designed to maintain a price near $100 through a variable monthly payout. They had fallen below $70 during the summer selloff. (The Block)

STRC has funded much of Strategy’s bitcoin buying in 2026. Its rebound tracks the broader recovery in the company’s financing structure.

The profit swing follows a shift in Strategy’s treasury tactics. The company sold 6,948 BTC for roughly $432.5 million since May, breaking from years of a “never sell” stance. During the week ending August 9, it sold 1,690 BTC for $109 million and used the proceeds to repurchase STRC shares. The following week, Strategy stopped selling bitcoin. Instead it raised $333.7 million through MSTR share sales between August 10 and August 16. Of those proceeds, $52.4 million went to STRC dividends and $132.2 million to STRC repurchases under its Digital Credit Securities Repurchase Program. The company made no bitcoin purchases or sales in that window. (Decrypt, The Block)

Strategy increased its dollar reserve to $4.8 billion. It has not bought bitcoin in roughly two months while building that cash position. (The Block)

Traders, as ever, disagree on what the pause signals.

Separately, TD Cowen’s Index Product Group pushed back against an MSCI methodology proposal that could result in the removal of Strategy and other digital asset treasuries from its ACWI IMI index. TD Cowen called the methodology “arbitrary, overly complex and directed at excluding certain types of issuers” and said the proposal “should be DOA.” (The Block)

Chinese microcap MicroCloud Hologram obtained 140,268 MSTR shares through the maturity and settlement of structured notes. That is worth about $15.8 million based on the closing price at the time, according to GlobeNewswire. (The Block)

Neither source provides forward guidance on when Strategy might resume bitcoin purchases. The average acquisition cost of $75,385, cited by Decrypt, was not independently confirmed by The Block.