Strategy Back Above Its Bitcoin Cost Basis

Strategy, the largest corporate holder of Bitcoin, has moved back into unrealized profit on its Bitcoin holdings after BTC climbed above the company's average purchase price of $75,385 per coin, reversing a multibillion-dollar paper loss that was recorded earlier this year. The shift marks a turnaround for a treasury that had spent recent months trading below its aggregate acquisition cost. The company, formerly known as MicroStrategy, renamed itself Strategy in early 2025 as the Bitcoin treasury became the centerpiece of the business.

The company holds 840,447 BTC acquired at an average cost of $75,385 per coin. With Bitcoin trading near $75,613, the position was worth approximately $192 million more than its aggregate purchase cost. Strategy's August 17 filing with the U.S. Securities and Exchange Commission put the total acquisition cost of the Bitcoin holdings at about $63.36 billion. The company did not report any Bitcoin purchases or sales during its latest reporting week. Strategy discloses its holdings and any transactions in weekly filings, so subsequent changes to the position will be visible in those updates.

Recovery Follows a Sharp Bitcoin Rebound

The return to cost basis followed a sharp recovery in Bitcoin's price. BTC gained about 8.5% in a single day as risk assets rallied, a move that helped erase a paper loss which had reached roughly $9.9 billion only days earlier.

Strategy's Bitcoin position has moved through much larger swings over the course of the year. When BTC fell toward $58,000 in late June, the company's unrealized loss on its holdings reached approximately $13 billion. Under the fair-value accounting standard the company adopted for digital assets this year, those price swings flow directly through reported earnings rather than being recognized only as impairment write-downs.

Bitcoin later extended its rebound above $77,000, pushing Strategy's unrealized gain beyond the $192 million level calculated at $75,613 and expanding the figure to roughly $1.4 billion. At a price near $77,300, the company's 840,447 BTC would be worth approximately $65 billion. Bitcoin most recently traded near $78,900 after gaining more than 20% over a seven-day period, with treasury market developments, spot Bitcoin ETF inflows and short liquidations all contributing to the broader crypto rally.

Treasury Strategy and Capital Raising

Strategy began buying Bitcoin in 2020 and has since become the largest corporate holder of the asset. Its treasury now represents about 4% of Bitcoin's circulating supply, a concentration large enough that the company's weekly disclosures have become a regularly tracked data point in crypto markets. The approach has since been imitated by other public companies, including Japan's Metaplanet and a series of newly formed corporate treasury vehicles.

The company has funded its Bitcoin purchases through a mix of convertible notes, preferred equity and at-the-market share sales under a multiyear capital-raising plan announced in late 2024 and later expanded. In recent months it has also adjusted that strategy. Strategy sold nearly 7,000 BTC across several transactions while raising cash to fund preferred-share dividends, share repurchases and its U.S. dollar reserve. During its latest reporting week, the company raised about $333.7 million through share sales. The proceeds were used to support corporate funding needs rather than to add to its Bitcoin holdings during the period.

BitMine's Ethereum Position Remains Underwater

The improvement in Strategy's Bitcoin position contrasts with the state of BitMine's Ethereum holdings. BitMine holds approximately 5.82 million ETH at an estimated average cost of $3,366 per token. With Ethereum trading near $2,370, that position carried an unrealized loss of about $5.79 billion. BitMine assembled that stake during 2025 through repeated capital raises that adapted Strategy's playbook to Ethereum, becoming the largest corporate holder of ETH. The comparison reflects the different price recoveries recorded by Bitcoin and Ethereum relative to the two companies' reported acquisition costs.

Strategy remains exposed to further changes in Bitcoin's price because its treasury accounts for a large part of the company's market value. The latest move above $75,385 returns that position to paper profit after months of trading below its average acquisition cost.

Primary sources: Wu Blockchain on X | CoinCentral