With Bitcoin Rallying, Strategy (MSTR) Just Flipped From a $13 Billion Loss to a $1.4 Billion Gain. Should Investors Buy the Rally?

Shares of Strategy Inc (NASDAQ:MSTR), formerly MicroStrategy, surged this week as the price of Bitcoin (CRYPTO:BTC) continued to balloon. Bitcoin's price has surged by more than 20% in recent trading sessions, moving from a multi-month low of around $63,000 to above $77,000.

Strategy generated $477 million in revenue last year, mainly by selling enterprise software. But the biggest swings in the company's stock price are often related to its 840,447 Bitcoin treasury. That's roughly 4% of Bitcoin's outstanding supply, with a current valuation of roughly $65 billion.

Strategy began purchasing Bitcoin in 2020 at around $11,000. Its highest recorded purchase price was roughly $123,000 in 2025. Overall, Strategy has an average cost basis of $75,385. Before the recent price surge, the company had a multi-billion-dollar unrealized loss on its purchases. After the spike, however, Strategy is now sitting on a slight but meaningful long-term profit.

Is the Bitcoin bear market over? There are two things investors should keep in mind following the latest rally.

1. Strategy is cutting its Bitcoin position

Notably, Strategy has actually been a net seller of Bitcoin in recent weeks. Never before has Strategy reduced its Bitcoin position. But on June 2, it began with a $2 million sale. The company restarted purchases later that month. But in July, it booked a single sale of about $135 million, followed by two additional sales exceeding $100 million in August.

Meanwhile, Strategy has also been selling additional equity in its business. Taken together, Strategy seems to be adjusting its capital exposure, shoring up the price of its preferred shares through repurchases and focusing on liquidity. CEO Michael Saylor stressed that he's still a long-term Bitcoin bull. But he's now more focused on maintaining the company's Bitcoin treasury versus acquiring more Bitcoin at all costs.

While Strategy's approach doesn't speak for the entire corporate world, it is notable that one of the biggest corporate proponents of Bitcoin is clearly pulling back from its all-in commitment to the cryptocurrency.

Image source: Getty Images

2. Bitcoin's long-term potential remains lucrative

Cryptocurrencies have lost much of their luster as AI stocks have stolen the spotlight. But the long-term investment case for Bitcoin remains firmly intact. In fact, there's a single value comparison investors can lean on when assessing what Bitcoin’s valuation could be in the long term.

In the past, Bitcoin's position as the "digital gold" was much discussed. Other cryptocurrencies are better designed for transactional use. Bitcoin, however, was well-suited as a store of value, similar to gold. While more gold is mined each year, its long-term supply is relatively fixed. The same is true for Bitcoin.

Gold also has a long history of human valuation, a history that continues to sustain its social value. While it has a much shorter history, Bitcoin's position as the first major crypto use case solidifies its place in history, a position that will never be superseded.

When it comes to being the "digital gold", Bitcoin has a very strong argument. Even after the recent rally, Bitcoin's market cap remains well under $2 billion. Gold, meanwhile, currently has a total market cap above $30 billion. Without considering any other Bitcoin use case, the blue chip crypto asset continues to have lucrative long-term upside potential as a store of value alone.

Ryan Vanzo has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.