Michael Saylor’s strategy missed Bitcoin’s brief plunge to $60,000 last week. He bought $90 million worth of BTC at an average price of about $78,800.
Last week, Michael Saylor’s Strategy, the biggest public investor of Bitcoin, bought more BTC. This increased its holdings without lowering its entire cost base.
Last week, Strategy bought 1,142 Bitcoin BTC$70,797 for $90 million, according to a filing with the US Securities and Exchange Commission on Monday.
The purchases were made at an average price of $78,815 per BTC, even though Bitcoin traded below that level for most of the week and briefly hit $60,000 on Coinbase last Thursday.
Total holdings and average purchase price
The most recent purchase raised Strategy’s total Bitcoin holdings to 714,644 BTC, which they bought for about $54.35 billion at an average price of $76,056 per coin.
Strategy didn’t have to cut the average cost basis of its current holdings by buying Bitcoin at close to $79,000 per coin.
Bitcoin, on the other hand, has been trading considerably below that level for almost a week. According to Coinbase data, the price dropped drastically below $78,000 last Tuesday and has not gone above $72,000 since then.
Historical context and market speculation
The purchase is Strategy’s second Bitcoin buy, and the price of the cryptocurrency is below the company’s average purchase price of $76,056.
In 2022, Strategy had a similar problem when Bitcoin dropped below $30,000, even though the average buy price was around $30,600. At that time, Strategy cut down its buying a lot, but it still bought smaller things even when they were cheaper than what it paid for them.
unrealizedSome people in the market thought that Strategy would aim to avoid buying below its average pricing this cycle because of the optics around unrealised losses.
Some others remarked that Michael Saylor might instead say he bought something else at a far higher price.
“Saylor on Monday: “We’ve added another 1,000 bitcoins at an average price of $95,000,” one market watcher joked in an X post on Friday.
According to TradingView statistics, shares of Strategy (MSTR) have been just as volatile as Bitcoin, plummeting to about $107 last Thursday.
The stock started to go up on Friday, climbing 26% to close at about $135. This was in line with a small recovery in the crypto markets.