After Bitcoin rebounded to around $79,000, the 840,447 BTC held by Strategy once again returned to a profitable range. The company's disclosure schedule indicates that it usually updates its Bitcoin buying activities on Monday mornings. After nearly two months of halting purchases, the market has begun to pay attention to whether it will resume increasing its holdings.
Position value has returned above the cost line.
According to the data referenced in the text with the label CoinGecko, Bitcoin once rose to around $79,007 on Sunday, and the corresponding market value of the Strategy holdings was about $66.4 billion. Calculated at an average holding cost of $75,653, these holdings are about 4.4% above cost, with a floating profit of over $2.8 billion.
This change also ended the significant fluctuations of the previous months. Reports mentioned that in July, Bitcoin once fell to around $58,000, and at that time, Strategy's holdings suffered a floating loss of about $13 billion. As Bitcoin rose from around $62,000 to above $70,000 this month, this portion of the book loss has been recouped.
After a nearly two-month pause in purchases, the market is watching to see if there will be a resumption of increased holdings.
Michael Saylor posted a statement on social media over the weekend saying "We're back," which further sparked speculation among outsiders about whether Strategy will resume buying coins. However, the reports also pointed out that this post did not explicitly indicate that the company was about to make purchases.
Strategy has been continuously pursuing a Bitcoin accumulation strategy over the past few years, but they have not increased their holdings in the past two months, which is relatively rare in their historical operations. As a result, the market has linked the price recovery to the company's next capital arrangements, with particular attention to whether they will resume regular buying.
Recently, through selling stocks for financing, most of the Bitcoin has not been used.
Reports show that Strategy recently raised $334 million by selling MSTR shares, without utilizing a large portion of its bitcoin holdings in the process. The company has incorporated this approach into what it calls a capital management framework, indicating that its financial arrangements are shifting from a single holding strategy to more flexible financial operations.
However, Strategy has not been completely non-trading in recent months. Reports mention that the company has sold a small amount of Bitcoin to pay preferred stock dividends and for share repurchases. This represents a change from its past stance, which placed more emphasis on long-term holding.
Bitcoin remains below its previous high.
Although the position has turned profitable again, the current level of profit is still significantly lower than previous highs. Reports indicate that Bitcoin fell back to $76,877 last Friday, partly because Federal Reserve Chairman Kevin Warsh stated that the pace of inflation cooling down is not fast enough, which led to an increase in market expectations for a rate hike in September.
Currently, the price of Bitcoin is still below its historical high of nearly $126,000 in October. In other words, although the book profit of Strategy has returned to positive, it is still at a lower level compared to the previous peak.
Additional information:The company's disclosure schedule usually focuses on Monday mornings, but as of the time of this report, there was no confirmation on the social media platform of Saylor that any new Bitcoin purchases had taken place.
