TLDR
- Strategy held 840,447 BTC as of August 23, with an average purchase price of $75,389 per coin
- Bitcoin rallying above that cost basis flipped a $9.5B unrealized loss into a $4.7B unrealized profit in under a week
- Every $1,000 move in Bitcoin price shifts Strategy’s position value by roughly $840 million
- Strategy raised $2.01B from stock sales, with $300M going to USD reserves and $136.4M used to repurchase STRC preferred stock
- The company now holds $6.69B in total USD assets, including $1.59B in cash
Strategy Inc. (MSTR) has gone from deep in the red to sitting on a $4.7 billion unrealized profit, all thanks to Bitcoin’s sharp recovery over the past week.
Bitcoin was trading at $79,040 at the time of writing, after briefly breaking above $81,000 on Tuesday. That’s a gain of over 22% in seven days, and it was enough to push Bitcoin back above Strategy’s average acquisition cost of $75,389 per coin.
That single crossover point changed everything for Strategy’s balance sheet.
Just one week earlier, with Bitcoin trading in the low $60,000s, the company’s position was sitting on a $9.5 billion unrealized loss. When Bitcoin cleared the cost basis on August 21, the position flipped into profit for the first time in months.
The math behind the swings is simple but striking. Strategy holds 840,447 BTC, bought at a total cost of $63.36 billion. Every $1,000 move in Bitcoin’s price shifts the value of that position by approximately $840 million. Bitcoin only had to clear the mid-$70,000s for the books to flip green.
Despite the turnaround in its Bitcoin holdings, MSTR stock was down 1.40% at $120.92 on the day.
From $14B Gain to $8.2B Loss and Back Again
This kind of volatility is not new for Strategy. Back in July, the company was on track for a $14 billion unrealized gain before a pullback erased those profits entirely, resulting in an $8.2 billion quarterly loss.
Executive Chairman Michael Saylor has consistently said the company will not sell its Bitcoin. That position has been tested, however. Over the past 60 days, Strategy sold small amounts of Bitcoin on four separate occasions to fund dividends on its STRC perpetual preferred stock.
No Bitcoin was bought or sold during the most recent week ending August 23.
Strategy Builds Cash Reserves
Beyond Bitcoin, Strategy has been shoring up its financial position. The company raised $2.01 billion from stock sales, directing $300 million into USD reserves and using $136.4 million to repurchase STRC preferred stock.
As of August 23, Strategy held $5.10 billion in USD reserves and $1.59 billion in cash, bringing total USD assets to $6.69 billion.
The company’s entire treasury strategy is tied to Bitcoin, funded through convertible debt and preferred stock offerings.
BitMEX co-founder Arthur Hayes has argued that Bitcoin holding above $80,000 could signal the start of a new leg higher, linked to U.S. Treasury liquidity dynamics.
Bitcoin was trading at $79,040 at the time of writing.
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