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 Bitcoin
In a new post on X, Strategy co-founder and chairman Michael Saylor has shared information related to the latest Bitcoin acquisition completed by the company. In total, the treasury firm has added 855 BTC to its holdings for $75.3 million.
The 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 purchase’s balance isn’t all that has been affected by the market crash. According to Saylor, Strategy’s entire stack, which has grown to 713,502 BTC after the latest acquisition, has an average cost basis of $76,052. At its lowest, BTC went below $75,000 on Sunday, so the largest Bitcoin treasury firm saw its holdings go underwater.
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.
Strategy isn’t the only digital asset treasury company that has revealed a buy amid the market downturn. Bitmine, the largest corporate holder of Ethereum, also announced Monday that it participated in buying over the past week. “Bitmine has been steadily buying Ethereum, as we view this pullback as attractive, given the strengthening fundamentals,” noted Tom Lee, Bitmine chairman.
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 Price
At the time of writing, Bitcoin is floating around $78,900, down 9.5% in the last seven days.
Featured image from Dall-E, chart from TradingView.com
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