Perhaps the most notable news in the crypto industry on Monday came from Strategy, as the company began buying more BTC again after making some sales and rebuilding its USD reserve to over $6.7 billion.
While this may seem celebratory at first, it’s worth taking a closer look at when the company sold and when it bought more bitcoin, as it turns out it made substantial losses amid the asset’s price rally.
Return to purchase
As reported yesterday, the largest company holding the leading cryptocurrency spent $370 million to acquire 4,603 BTC at an average price of $80,310 per unit. This means that the acquisition took place the previous week, when bitcoin surpassed $80,000 for the first time since last May. However, the time spent above this coveted level was quite brief.
This purchase nevertheless comes after four consecutive sales made between June 30 and August 10, as specified by Santiment explain. During this period, the company offloaded 6,916 BTC, worth around $430 million at the time, at an average price of around $62,100.
Therefore, the 4,603 BTC repurchased managed to offset about two-thirds of everything the company sold over the summer. What is quite intriguing is that Strategy’s purchase was made at a price almost $18,000 per BTC above the sales average.
Analysts like Michaël van de Poppe have talked about the timing, adage that they are “genuinely impressed” by the return of purchasing power around BTC’s recent high.
On the positive side, Bitcoin’s dramatic resurgence from the recent low of $60,000 to nearly $80,000 at press time means that Strategy’s massive position has turned green again. The company, which had an unrealized loss of more than $10 billion a few weeks ago, is now about $2.3 billion above water.
STRC recovers
The strategy used the last two months, in which it sold BTC and did not buy any, to raise additional funds by selling MSTR to increase its USD reserve. The total now exceeds $6.7 billion.
Additionally, it repurchased a significant portion of its STRC shares, the price of which had fallen well below the par $100 level to $75. However, the replenishment of the US dollar reserve and the repurchase of shares allowed STRC to recover to just over $97 at Monday’s closing price.
The article Saylor’s Bitcoin U-Turn: Strategy Sells at $62,000 and Buys Back at $80,000 appeared first on CryptoPotato.