Strategy shares jumped 10% in Friday’s premarket trading to $120, marking their highest level in roughly two months.
The company has returned to an unrealized profit on its Bitcoin portfolio, with gains estimated at about $1.4 billion, or 2.4%, after BTC advanced nearly 22% over five consecutive sessions.
Strategy currently holds 840,447 BTC, purchased at an average cost of around $75,385 per Bitcoin. With BTC trading near $77,000, the company’s holdings are now above their aggregate purchase price.
Strategy spent much of the year carrying unrealized Bitcoin losses after BTC plunged about 54% from its October peak near $126,000. The recent recovery has pushed the company’s position back into the green.
Bitcoin traded mostly between the low and mid-$60,000s over recent months, during which Strategy sold about 6,916 BTC. The company has also expanded its U.S. dollar reserve to $4.8 billion, which it estimates can cover dividends and other obligations for approximately 2.8 years.
At Bitcoin’s July low near $58,000, Strategy’s unrealized loss on its holdings reached around $13 billion, equal to roughly 20.4% of the portfolio’s total acquisition cost.
Strategy is also working to bring its STRC perpetual preferred stock closer to its $100 par value.
The company has repurchased approximately $347 million worth of STRC over the past four weeks, using more than a third of its $1 billion authorized buyback program. The pace of repurchases has increased from week to week.
STRC recently traded around $95.62, up approximately 35% from its June low of $71.
A broader recovery in digital credit markets could provide further support for STRC. SATA, a perpetual preferred security issued by Strive Asset Management, briefly returned to its $100 par value Thursday for the first time in about two months.
