Bitcoin Surge Adds $1.4B to Strategy’s Crypto Holdings
- Strategy shares gained 10% to $120 in Friday’s premarket trading, reaching their highest point in roughly two months.
- The company’s Bitcoin holdings have returned to an unrealized gain of about $1.4 billion, or 2.4%, following a nearly 22% rise in BTC over five consecutive trading sessions.
- Strategy owns 840,447 BTC, with an average purchase price of approximately $75,385 per coin. At Bitcoin’s current price near $77,000, the company’s holdings are back above their total acquisition cost.
- The Bitcoin treasury had remained in the red for much of the year after BTC plunged roughly 54% from its October record near $126,000. The recent rally has pushed Strategy’s position back into profit.
- Bitcoin spent much of the past few months around the low-to-mid $60,000 range, during which Strategy sold approximately 6,916 BTC. The company also increased its cash reserve to $4.8 billion, which it says provides around 2.8 years of coverage for dividends and other obligations.
- At Bitcoin’s July low of roughly $58,000, Strategy’s unrealized loss had climbed to about $13 billion, representing approximately 20.4% of the company’s total Bitcoin cost basis.
- Another priority for Strategy is restoring its STRC perpetual preferred shares toward their $100 par value.
- Strategy has spent about $347 million buying back STRC during the past four weeks, using more than a third of its $1 billion repurchase authorization. The company has been increasing the pace of the buybacks each week.
- STRC is trading near $95.62, up approximately 35% from its June low of $71.
- A broader improvement in the digital credit market could provide additional support for STRC. SATA, a perpetual preferred security from Strive Asset Management, briefly returned to its $100 par value Thursday for the first time in two months.
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