cpeditor
- Strategy stock climbed 10% to $120 in Friday’s premarket trading, its strongest level in about two months.
- Strategy is once again sitting on an unrealized Bitcoin profit of approximately $1.4 billion, or 2.4%, after BTC surged nearly 22% during a five-session winning streak.
- The company holds 840,447 BTC at an average acquisition price of roughly $75,385 per coin. With Bitcoin trading near $77,000, the portfolio has moved above its overall cost basis.
- Strategy had carried significant unrealized Bitcoin losses for much of the year after BTC dropped about 54% from its October peak around $126,000. The latest rally has reversed those losses.
- Bitcoin spent much of the past few months trading between the low and mid-$60,000s, prompting Strategy to sell approximately 6,916 BTC during that period. The company has also raised its U.S. dollar reserve to $4.8 billion, enough to cover dividends and other obligations for an estimated 2.8 years.
- During Bitcoin’s July decline to around $58,000, Strategy’s unrealized loss on its holdings reached roughly $13 billion, equal to about 20.4% of its total Bitcoin cost basis.
- The company is also working to restore its STRC perpetual preferred shares to their $100 par value.
- Strategy has repurchased about $347 million worth of STRC over the last four weeks, using more than one-third of its $1 billion buyback authorization. The pace of repurchases has accelerated each week.
- STRC currently trades at around $95.62, about 35% above its June low of $71.
- Improving conditions across digital credit markets could offer another boost to STRC. SATA, a perpetual preferred security issued by Strive Asset Management, briefly returned to its $100 par value Thursday for the first time in roughly two months.
