A recent social media post by Michael Saylor, founder and Chairman of the board of directors of Strategy, has fueled expectations that the company may be preparing to start buying bitcoin again after a long hiatus.
Saylor, who posts a chart every Sunday showing the company's bitcoin purchases, this time caught investors' attention by posting it with the caption "Launching the Bitcoin Movement".
Market participants suggest this post could be an indirect hint that Strategy may announce a new bitcoin purchase on Monday. The company has not announced any new bitcoin purchases over the past five weeks.
This situation is unusual for Strategy, known for its regular purchases of $BTC. After Saylor's statement last week that "we will need a different color," the company announced on July 27th that it had not bought any new bitcoin.
According to a recent filing with the U.S. Securities and Exchange Commission (SEC), as of July 26th, Strategy owned 843,775 $BTC. The company acquired these assets for a total of $63.69 billion, at an average cost of $75,476 per bitcoin.
At current prices, with bitcoin trading around $63,200, the value of the company's bitcoin portfolio is estimated at approximately $53.3 billion, while the position's value is estimated to be roughly $10.4 billion below its actual cost.
Strategy's last bitcoin purchase was on June 22nd, when the company acquired 520 $BTC for approximately $34.9 million. However, between June 29th and July 5th, it sold 3,588 $BTC to raise about $216 million in cash to fund preferred share payments and strengthen its dollar reserves.
Over the past five weeks, the company not only suspended bitcoin purchases but also increased its dollar reserves to $3.75 billion through sales of common stock and also launched the STRC share repurchase program. These strategic moves have received support from TD Cowen and Benchmark analysts.
*This is not investment advice.
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