Strategy’s bitcoin bet back in profit after $11B drawdown

Michael Saylor’s bitcoin (BTC) treasury at Strategy is back in the green this morning — but only barely, and only because BTC gave him a lucky break after the US and Iran announced the reopening of the Strait of Hormuz.

Strategy (formerly MicroStrategy) now holds 780,897 BTC at a blended average cost basis of $75,577 per coin, according to its own disclosure page.

The company’s total expenditures to amass that hoard cost cost $59 billion. BTC traded above $77,870 this morning, making the stack worth roughly $60.8 billion. The unrealized gain works out to $1.8 billion, or a 3% gain.

After nearly six years of leveraged buying, debt issuances, perpetual preferred sales, and common stock dilution, the company has staged a multi-billion dollar comeback this morning.

Strategy’s $11B unrealized loss to green again

Protos previously reported that Strategy owned 640,031 BTC on October 6, 2025 at an average cost of $73,983. BTC traded near $125,000 per coin that day.

The company’s paper profit at that time was an impressive $32 billion. 

Saylor, who pledges never to liquidate BTC, proceeded to hold every coin through a gut-wrenching downturn.

Four months later, on February 6, BTC dropped to an intraday low of $59,930. Strategy by then held 713,502 BTC acquired for $54.26 billion at an average of $76,052 per coin. Worse, Saylor had kept buying through the decline, at prices far above the low.

At the February 6 low, the position was worth just $42.7 billion.

The unrealized loss had reached negative $11.50 billion, or a negative 21.2% unrealized loss.

Besides seeing more red on his screen, nothing much else about the corporation changed over that time period.

The company’s board of directors kept declaring preferred share dividends on-time. Common stockholders kept suffering dilution, as usual.

Saylor kept posting orange dots, a visual representation of the company’s BTC purchases. 

The primary thing that changed was the whipsawing price of the one asset that he had repeatedly promised never to sell.

Read more: Buying the dip? Strategy prefers the top of the range

Saved by a Strait of Hormuz rally

Fortunately, BTC has since rallied roughly 30% off that February low. Strategy’s holdings, now up to 780,897 BTC, sit in positive territory as of a few hours ago. 

The chart tells the story of Strategy’s intraday success. The asset, not the company’s management, rescued their leveraged position.

Saylor’s buying through the drawdown arguably made the recovery thinner. Q1 2026 buys carried a volume-weighted cost near $80,929 per coin, and his weekly purchases overwhelmingly landed in the upper half of each week’s available trading range.

Those overpriced buys are what pushed the company’s blended cost basis up. The same company that once sat on a $32.6 billion gain in October now has a $1.8 billion gain, and was more than $11 billion underwater in the interim.

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