After a continuous rebound of Bitcoin, Strategy's balance sheet pressure was significantly reduced. With the BTC returning to about $77,000, the company listed by Michael Seller, which promoted the Bitcoin Treasury strategy, held bitcoin, which was converted into a surplus, and the stock price went up the same day.
Eight hundred and forty thousand bitcoins are back on the line.
According to the data quoted in the paper, Strategy currently holds 840,447 bitcoins at an average cost of approximately US$ 75,385 per piece. At a Friday price of about $77,000, this portion of the stowage represents unrealized gains of approximately $1.4 billion, or 2.4 per cent.
In the previous few months, Bitcoin had been weak, and Strategy had at one time faced a book loss of about $13 billion. With BTC aggregating close to 22 per cent over five consecutive trading days, the situation quickly reversed, with currency prices at one point approaching $80 million.
Treasury strategy no longer buys or sells.
The article mentions that Strategy sold 6,916 bitcoins during the previous market fall. At that time, bitcoin mostly operated between 60,000 and 65,000 United States dollars, which also showed that the company had adjusted its treasury management.
Unlike the previous emphasis on long-term holdings, Strategy now allows the sale of bitcoin in specific circumstances for replenishment of reserves, payment of dividends and repurchase of securities. This means that the company has more room for moving funds at the lower market stage.
The dollar reserve rose to $4.8 billion.
In addition to adjusting the Bitcoin treasury operations, the company is increasing its cash buffer. Reports indicate that Strategy ' s dollar reserves have increased to $4.8 billion, sufficient to cover about 2.8 years of dividends and other obligations.
During the same period, the company continued to support its STRC priority stock price. Over the past four weeks, Strategy has repurchased approximately $347 million, and has used one third of the over $1 billion buy-back authorization. STRC prices also recovered from a low point of approximately $71 in June to about $95,62.
- Bitcoin hold: 840,447
- Average cost: US$ 75,385
- United States dollar reserve: $4.8 billion
Bitcoin is still the core variable of stock prices.
It was reported that bitcoin prices remained the most important influence factor for MSTR investors. This round of about 22 per cent of the BTC rebounds not only allowed the company to revert from large book losses to surplus, but also directly pushed Strategy stock prices up by about 6 per cent on Friday.
It also reflects that Strategy, as a highly leveraged bitcoin convertible, still shows a high correlation with BTC volatility. The company ' s recent strategy to increase reserves, repurchase priority shares and adjust its treasury is more of a way to reduce financial pressures in the downstream.