Woofun AI reports that Strategy (MSTR) has returned to profitability on its bitcoin (BTC) holdings, driven by an unrealized gain of roughly $1.4 billion, or 2.4%, as the asset rallied almost 22% over five straight days. The firm's core position consists of 840,447 BTC, acquired at an average price of $75,385, which now sits below bitcoin's current price of about $77,000.

The valuation shift is reflected in equity markets, where Strategy's common stock rose 10% in Friday pre-market trading to $120, marking its highest level in two months. This rebound contrasts sharply with the previous period when the company sat on an unrealized loss; when bitcoin traded as low as $58,000 in July, that loss reached approximately $13 billion, equivalent to 20.4% of the total bitcoin cost basis.

Woofun AI data shows the firm maintained liquidity by increasing its U.S. dollar reserve to $4.8 billion, providing 2.8 years of coverage for dividend payments and other obligations.

Structurally, the recovery follows a steep decline from bitcoin's October all-time high of $126,000, where prices fell roughly 54% before stabilizing in the low to mid-$60,000s. During this downturn, Strategy sold around 6,916 BTC to manage risk. The current price action has erased much of the drawdown, allowing the firm to pivot from defensive positioning to aggressive capital allocation.

A key priority remains restoring the perpetual preferred stock, STRC, to its $100 par value. Strategy has repurchased roughly $347 million of STRC over the past four weeks, deploying more than a third of its $1 billion buyback authorization, with purchases accelerating each week. STRC is currently trading at $95.62, up roughly 35% from its June low of $71. Another potential tailwind is the recovery in the broader digital credit market, evidenced by SATA, the perpetual preferred security issued by Strive Asset Management (ASST), briefly returning to its $100 par value on Thursday for the first time in two months.