Strategy's 840,447 BTC swung to an unrealized gain of about $1.4 billion after bitcoin's price climbed near $77,000 this week, ending months of paper losses for the corporate treasury. The rally, driven by a Treasury bond-market intervention and a short squeeze, also lifted Strategy's stock and pushed its preferred shares back toward par value.
Strategy's bitcoin holdings swung to an unrealized gain of roughly $1.4 billion, or 2.4%. Bitcoin itself added almost 22% over five straight days of advances. The company owns 840,447 BTC bought at an average price of $75,385, against bitcoin's current price of about $77,000.
Its common stock also rose, climbing 10% in Friday pre-market trading to $120, its highest level in two months. But the swing back to profit follows a stretch of unrealized losses on paper.
A treasury that spent most of the year in unrealized loss
Strategy had been sitting on an unrealized loss for much of the year as bitcoin fell roughly 54% from its October all-time high of $126,000. When bitcoin traded as low as $58,000 in July, that unrealized loss reached about $13 billion, equivalent to 20.4% of the company's total bitcoin cost basis. Bitcoin traded in the low to mid-$60,000s for much of the past few months, a stretch during which Strategy sold around 6,916 BTC.
Preferred stock buybacks accelerate toward par
A key priority for the company has been restoring its perpetual preferred stock, STRC, to its $100 par value. Strategy has repurchased roughly $347 million of STRC over the past four weeks, deploying more than a third of its $1 billion buyback authorization, with purchases accelerating each week. STRC now trades at $95.62, up roughly 35% from its June low of $71. Strategy has also increased its dollar reserve to $4.8 billion, providing 2.8 years of coverage for dividend payments and other obligations.
Rally tied to a bond-market shift and a short squeeze
Bitcoin's advance this week broke through its 200-day simple moving average. Cointelegraph described that level, $68,967, as key to ending the long-term downtrend. According to CNBC, the rally began Wednesday when Treasury yields pulled back sharply following the Treasury's intervention in the bond market, which was later amplified by a short squeeze that liquidated roughly $2.7 billion in crypto short positions, according to CoinGlass.
Despite the gains, bitcoin remains well below its 2026 high of $94,820, reached in mid-January, and its all-time high of $126,198, hit last October.
Sources: CoinDesk, Cointelegraph, CNBC
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