Bitcoin’s Record Rally Fuels First Profitable Quarter in 18 Months

After six quarters of bleeding, Bitcoin's parabolic surge finally flips the script.

How the crypto king's bull run resurrected dead strategies

When BTC smashed through its previous ATH earlier this year, it didn't just make headlines—it revived trading approaches left for dead. Suddenly, 'diamond hands' became a viable strategy again (much to Wall Street's chagrin).

The numbers don't lie: 18 months of losses erased in 90 days. Turns out hodling beats overthinking when the market goes vertical—though good luck explaining that to your CFA.

Now the real question: Can this momentum outlast the traditional finance crowd's next 'crypto winter' panic?

Strategy Reports $14 Billion Gain

As of June 30, Strategy held an impressive 597,325 BTC, purchased at an average price of $70,982 per coin. With bitcoin currently trading in a consolidation between $114,000 and $120,000, the company recorded a staggering $14 billion unrealized fair value gain on its digital assets. 

This marked a stark contrast to the previous year, when the company co-founded by Bitcoin bull Michael Saylor, faced a loss of $102.6 million, or 57 cents per share. 

For the three months ending June 30, Strategy posted a net profit of $9.97 billion, or $32.60 per share as the company has increasingly ramped up its acquisition efforts through new initiatives this year.

‘Hyper-Growth Phase’ For Bitcoin

Historically, the company faced restrictions on recognizing gains from Bitcoin unless it sold the assets; it could only account for losses if the cryptocurrency’s value fell below its purchase price. However, this recent profit signals a shift in its financial strategy, reflecting broader corporate acceptance of cryptocurrencies. 

Strategy began its Bitcoin accumulation in 2020, initially using cash and later financing its purchases through low-cost convertible bonds and stock sales.

The firm is now ranked first among the top 100 public Bitcoin treasury companies. Following it are the mining firm MARA Holdings, XXI, the Bitcoin Standard Treasury Company, and Riot Platforms.

The company’s stock, MSTR, has surged nearly 39% this year, outpacing Bitcoin’s own 25% increase. This momentum has inspired other public companies to adopt similar strategies, emulating the buy-and-hold treasury approach championed by Strategy’s co-founder Michael Saylor. 

On a recent post-earnings call by the company, Saylor remarked that the digital asset industry is entering a “hyper-growth, hyper-adoption phase” for Bitcoin as a treasury reserve asset.

Moreover, several companies are now diversifying their crypto holdings, exploring other tokens like ethereum (ETH) and utilizing mergers with blank-check companies to integrate crypto assets into their equity structures. 

Strategy’s stock, which saw a nearly fivefold increase last year, even earned it a place in the Nasdaq 100 index in December.

When writing, the market’s leading crypto trades at $115,780, meaning a 6% gap between current prices and its record high. 

Featured image from DALL-E, chart from TradingView.com