Strategy Inc. Records 1.4 Billion Gain on Bitcoin Treasury

Strategy Inc., formerly known as MicroStrategy, recorded an unrealized gain of approximately 1.4 billion dollars on its Bitcoin treasury following a cryptocurrency rally. Bitcoin prices rose over 20% from a July low of 58,000 dollars to above 77,000 dollars, erasing a previous unrealized loss of roughly 13 billion dollars.

The company currently holds 840,447 bitcoins with an average cost basis of 75,385 dollars. While Executive Chairman Michael Saylor maintains a long-term bullish outlook, the firm has adopted a risk-managed posture by acting as a net seller of Bitcoin to establish a U.S. dollar cash reserve of up to 4.8 billion dollars for dividends and financial obligations.

To improve liquidity, Strategy Inc. is selling common stock to fund preferred share buybacks and reduce convertible debt. Despite the stock price surge accompanying Bitcoin's rise, the company faces potential uncertainty regarding a proposed MSCI benchmark rule change expected by October 2026.