Strategy Bitcoin Stack Returns to Profit as BTC Jumps 22%—840,447 BTC Above Cost
Strategy’s Bitcoin treasury has swung back into profit after Bitcoin rallied about 22% across five straight sessions, reversing billions of dollars in unrealized losses from the summer selloff. The company now holds 840,447 BTC acquired for $63.36B at an average cost of $75,385.
After reaching an intraday high above $79,000, Bitcoin traded around $77,300, putting Strategy roughly $1.6B above its aggregate acquisition cost. The turnaround also followed a short-squeeze move that helped push BTC through the $79,244 area after BTC surged past $74,000, helping wipe out more than $3B in bearish derivatives positions.
Strategy’s Bitcoin cost basis was previously a key level during the breakout. When BTC traded below $60,000 in June–July, Strategy’s position was deeply underwater; since then, improving liquidity, stronger ETF-related flows, lower long-term Treasury yields, and forced short covering helped lift Bitcoin back into the mid-to-high $70,000s.
On capital management, Strategy sold 1,690 BTC between Aug. 3 and Aug. 9 for $108.6M (avg $64,262) to fund repurchases of STRC preferred shares, keeping its BTC exposure broadly intact. With Bitcoin now above its average acquisition price for the first time in this rebound cycle, each $1,000 move in BTC is estimated to shift Strategy’s treasury value by about $840M.
Bullish
This news is bullish for trading because it confirms a fast, price-led recovery in Bitcoin and highlights that a major corporate holder (Strategy) has flipped from large unrealized losses back into profit. When BTC not only rebounds but clears key reference levels (Strategy’s average cost $75,385) and is linked to a short squeeze, the market often experiences momentum continuation: squeezed shorts tend to reduce immediate sell pressure, and improved risk sentiment can pull in additional spot demand.
In the short term, traders may see follow-through buying as the same narrative (Bitcoin reclaiming important cost/breakout zones) attracts momentum funds. The reported mechanism—forced short covering and derivatives liquidation—often increases volatility but also strengthens upward price pressure until leverage is worked off.
In the long term, corporate treasury profitability can support confidence in Bitcoin’s durability versus prior drawdowns, especially if the treasury management remains consistent. However, the positive impact is still indirectly tied to market price action; if BTC volatility reverses or liquidity tightens, the benefit can fade quickly, given Strategy’s estimated sensitivity (each $1,000 BTC move ≈ $840M in valuation change). Overall, the dominant market takeaway is: Bitcoin’s rebound is real, broad enough to squeeze leverage, and therefore likely to remain supportive.