Strategy, the largest corporate holder of Bitcoin, saw its extensive cryptocurrency treasury return to an unrealized profit on August 21 as the price of Bitcoin climbed above the firm's average acquisition cost of $75,385 per coin.

The company holds 840,447 Bitcoin, acquired at a total cost of approximately $63.36 billion including fees and expenses. Bitcoin's advance pushed the market value of those holdings above the cost basis for the first time in recent months, following a period of substantial paper losses.

Bitcoin Rally Drives Treasury Into the Black

Bitcoin rose about 8.5 percent over a 24-hour period, trading in a range that extended from roughly $69,498 to levels above $75,500. At a peak near $75,613, the difference of about $228 per coin translated into an estimated unrealized gain of $191.6 million on Strategy's position. Subsequent price fluctuations narrowed that figure to around $97.5 million when Bitcoin traded near $75,500.

As the rally continued and Bitcoin approached $77,000, the unrealized profit expanded further to roughly $1.4 billion, or about 2.4 percent above the aggregate cost basis. A $1,000 move in Bitcoin's price alters the value of Strategy's holdings by approximately $840 million, illustrating the scale of exposure in the corporate treasury.

Strategy had recorded large unrealized losses earlier in the year after Bitcoin declined from its October peak near $126,000. At a low around $58,000 in July, the paper loss reached approximately $13 billion, or more than 20 percent of the cost basis. The recent rebound erased those losses as Bitcoin recovered more than 20 percent over several days.

No Recent Purchases; Focus on Reserves and Preferred Shares

The company's most recent regulatory filings showed no Bitcoin purchases or sales in the week through August 16. Holdings remained unchanged from the prior week at 840,447 BTC. Strategy had previously sold 1,690 Bitcoin for about $108.6 million, directing the proceeds toward the repurchase of preferred shares. Over a longer period, sales totaled around 6,916 Bitcoin while prices traded in the low to mid-$60,000 range.

Instead of adding to the Bitcoin position, Strategy raised $333.7 million through the sale of common shares. Those funds supported preferred share dividends, additional buybacks of its STRC preferred stock, and an increase in the company's U.S. dollar reserve to $4.8 billion. The cash reserve now provides roughly 2.8 years of coverage for dividend obligations and other commitments.

Strategy has repurchased approximately $347 million of STRC over the past four weeks as part of efforts to restore the preferred shares closer to their $100 par value. STRC recently traded near $95.62, up substantially from a June low around $71.

Stock Response and Future Plans

Shares of Strategy advanced in tandem with Bitcoin's rise. The stock closed near $112.39 on Thursday after a gain of about 7.8 percent and climbed further in Friday premarket trading, reaching levels around $120, the highest in two months.

Chief Executive Officer Phong Le has stated that the company may resume Bitcoin purchases later in 2026, though no specific timing or amount has been disclosed. Strategy's peak holdings earlier stood at 847,363 Bitcoin before the recent sales.

Under current accounting standards, digital assets are marked to market, so changes in Bitcoin's price flow through to reported earnings. Unrealized gains or losses do not generate cash unless the company sells coins or uses the holdings in financing arrangements. The position's status relative to cost will continue to depend on whether Bitcoin remains above the $75,385 threshold.

Strategy's next weekly filing will provide an updated view of any changes to the Bitcoin balance or related activity.