Bitcoin Recovery Erases MicroStrategy's $14.5 Billion Unrealized Loss

MicroStrategy returned to an unrealized profit position with paper gains of $1.37 billion. The recovery follows a first-quarter period where the company reported approximately $14.5 billion in unrealized paper losses.

Bitcoin climbed above $77,000 on April 17, crossing $78,000 for the first time since the February 5 selloff. This price move pushed the company's holdings of 780,897 BTC—valued at $60.817 billion—above its average purchase price of $75,577.

MicroStrategy shares rose as Bitcoin strength improved sentiment for crypto-linked equities. The stock traded as high as $169.54, a gain of 13.83% during the session, and moved above its 200-week moving average. The rally was supported by a broader recovery in risk assets following a 10-day ceasefire between Israel and Lebanon on April 16 and signs of easing tension in the Middle East.

While the market focused on gains, Peter Schiff criticized the company's funding structure. Schiff labeled the STRC perpetual preferred stock, which currently pays an annualized yield of 11.5%, as "misleading to constitute fraud" and warned of potential lawsuits if dividends are canceled and the stock price falls. STRC shares dropped 0.94% to $99.06, falling below their $100 par value.