Saylor’s Strategy buys $90M in Bitcoin as price trades below cost basis
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Michael Saylor’s Strategy, the world’s largest public holder of Bitcoin, added another tranche of BTC last week, expanding its holdings without pushing its overall cost basis lower.
Strategy acquired 1,142 Bitcoin
BTCUSD
for $90 million last week, according to a US Securities and Exchange Commission filing on Monday.The acquisitions were made at an average price of $78,815 per BTC despite Bitcoin trading below that level for most of the week and briefly touching $60,000 on Coinbase last Thursday.
The latest buy brought Strategy’s total Bitcoin holdings to 714,644 BTC, purchased for around $54.35 billion at an average price of $76,056 per coin.
Strategy misses the Bitcoin dip?
By buying Bitcoin at close to $79,000 per coin, Strategy avoided lowering the average cost basis of its existing holdings.
Bitcoin, however, has traded well below that level for almost a week. The price fell sharply below $78,000 last Tuesday and has not climbed above the $72,000 mark since, according to Coinbase data.
The purchase marks Strategy’s second Bitcoin acquisition as the cryptocurrency trades below the company’s average acquisition price of $76,056.
Strategy faced a similar situation in 2022 when Bitcoin fell below $30,000 while its average purchase price stood at about $30,600. At the time, Strategy significantly slowed the pace of its buying, though it continued to make smaller purchases even at prices below its cost basis.
In the lead-up to the purchase, some market participants speculated that Strategy would try to avoid buying below its average cost this cycle, given the optics around unrealized losses.
Some users joked that Michael Saylor might instead announce another purchase at much higher levels.
“Saylor on Monday: We’ve added another 1,000 bitcoins at an average price of $95,000,” one market observer joked in an X post on Friday.
Strategy (MSTR) shares have mirrored Bitcoin’s volatility, dropping to around $107 last Thursday, according to TradingView data.In line with a minor rebound on crypto markets, the stock started rising on Friday, posting a spike of 26% to close at around $135.