Strategy (NASDAQ:MSTR) is outpacing Bitcoin (CRYPTO:BTC) in a sharp five-day rally — Strategy shares are up 27%, while Bitcoin has gained 19% over the same period.
Strategy’s Bitcoin Profit Surges
Strategy’s recent momentum is bolstered by its substantial Bitcoin holdings. As of Friday, the company is sitting on a $1.4 billion unrealized gain after Bitcoin surged.
This marks a significant turnaround for Strategy, which had been facing an unrealized loss of $13 billion when Bitcoin hit its July low of $58,000. The company owns 840,447 BTC, acquired at an average price of $75,385 per coin, and has been strategically managing its assets by selling some Bitcoin while building a substantial U.S. dollar reserve.
This reserve provides 2.8 years of coverage for dividend payments and other obligations. Strategy has also been active in restoring its perpetual preferred stock to its $100 par value, deploying more than a third of its $1 billion buyback authorization in recent weeks.
