Strategy’s Bitcoin holdings are in danger of going underwater after the latest price plunge, but that hasn’t stopped the firm from unveiling a new buy.
Strategy Has Bought Another $75.3 Million Worth Of BitcoinThe average cost of these tokens is $87,974, but during the last few days, the Bitcoin spot price has faced a heavy drawdown below this level, already putting Strategy’s new coins in a state of notable loss.
The asset has since bounced back a bit, however, putting the company back in the green. Though, with a value of $56.28 billion, Strategy’s Bitcoin is currently still very close to its acquisition cost of $54.26 billion. This implies that if bearish winds in the sector continue, the profitability of the firm’s holdings could again be challenged.
The company’s new announcement has come after the crash, but it may not actually be indicative of how the firm will respond to its cost basis being threatened, as the much higher buying price involved would suggest that the actual buy occurred last week and not after the drawdown. Given this, it remains to be seen whether Strategy will keep up its BTC buying spree in the coming week.
According to the filing with the US Securities and Exchange Commission (SEC), Saylor’s company funded the new acquisition using sales of its MSTR at-the-market (ATM) stock offering. Not all of the $106.1 million in proceeds have been allocated toward buying Bitcoin, however.
According to the press release, the company added 41,788 ETH to its reserves with this accumulation spree, taking the total to 4,285,125 ETH. The firm’s holdings are now equivalent to 3.55% of the Ethereum circulating supply, putting it over 70% of the way to its target of 5%.
BTC PriceAt the time of writing, Bitcoin is floating around $78,900, down 9.5% in the last seven days.
