Strategy founder and Chairman Michael Saylor’s recent social media post has fueled expectations that the company may be preparing to buy Bitcoin again after a long hiatus.
Saylor, who shares a chart every Sunday showing the company’s Bitcoin purchases, this time attracted investors’ attention by posting it with the note “Bitcoin Drive engaged.”
Market participants are speculating that this post could be an indirect message suggesting Strategy may announce a new Bitcoin purchase on Monday. The company hasn’t announced a new Bitcoin purchase in the past five weeks.
This situation stands out as unusual for Strategy, which is known for its regular $BTC purchases. Following Saylor’s “We’re gonna need another color” message last week, the company announced on July 27 that it had not purchased any new Bitcoin.
According to a recent filing with the U.S. Securities and Exchange Commission (SEC), Strategy held 843,775 $BTC as of July 26. The company acquired these assets for a total of $63.69 billion, at an average cost of $75,476 per Bitcoin.
At current prices, with Bitcoin trading at around $63,200, the company’s Bitcoin portfolio is valued at approximately $53.3 billion, while the cost of the position is estimated to be around $10.4 billion below its actual value.
Strategy’s last Bitcoin purchase took place on June 22nd, when the company bought 520 $BTC for approximately $34.9 million. However, between June 29th and July 5th, it sold 3,588 $BTC to raise approximately $216 million in cash to finance preferred stock payments and strengthen its dollar reserves.
Over the past five weeks, the company has not only halted Bitcoin purchases but also increased its dollar reserves to $3.75 billion through common stock sales and initiated a buyback program for STRC shares. These strategic moves have received support from analysts at TD Cowen and Benchmark.
*This is not investment advice.
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