Bitcoin rally puts Strategy back in profit
Strategy, Michael Saylor’s Bitcoin treasury company, has moved back into the black after a five-day run pushed BTC above the company’s average purchase price.
The company now holds 840,447 BTC, valued at about $64.97 billion at roughly $77,000 per coin. That leaves Strategy with an unrealized gain of about $1.4 billion, or 2.4%.
From a $13 billion hole in July
The swing is a sharp reversal from July, when Bitcoin dropped to around $58,000 and Strategy’s holdings were about $13 billion underwater. Bitcoin is still trading well below its October all-time high of $126,000.
Strategy shares rose about 10% in Friday pre-market trading to $120, the stock’s highest level in two months.
Strategy has been changing how it manages its BTC treasury
The recovery comes after a shift in Strategy’s Bitcoin treasury management. Since May, the company has sold 6,948 BTC for about $432.5 million after years of Michael Saylor promoting a “never sell” approach.
In the week ending Aug. 9, Strategy sold 1,690 BTC for $109 million and used the cash to repurchase STRC, its variable-rate perpetual preferred stock. That sale reduced the company’s holdings to 840,447 BTC.
The following week, Strategy stopped selling Bitcoin and instead raised $334 million through MSTR share sales. The company said the money went toward preferred dividends, STRC buybacks and its dollar reserve, which climbed to $4.8 billion.
Trump and the CFTC added fuel to the move
Bitcoin’s latest rally has run for five straight days and is up nearly 23%, its strongest stretch in months. For much of the summer, BTC traded in the low-to-mid $60,000 range.
The move picked up speed this week after President Donald Trump urged Congress on Wednesday to advance the Clarity Act, a bill that would set a federal framework for digital assets and split oversight between the Commodity Futures Trading Commission and the Securities and Exchange Commission.
On Thursday, CFTC Chair Michael S. Selig said he had directed staff to prepare crypto market structure rules in case Congress does not pass the legislation.
“If Clarity continues to stall because of Democrat obstruction, the CFTC will utilize its existing authorities to begin establishing a regime for crypto asset markets,” he said.