American business intelligence and software firm Strategy Inc has announced a fresh Bitcoin purchase. As revealed by Michael Saylor, the firm’s founder and chairman, his company bought a total of 855 new Bitcoin. This purchase comes as the price of Bitcoin crashed to a new low.
Strategy Bitcoin holdings
Over the weekend, Michael Saylor hinted at plans to buy more BTC, a routine the company has maintained since 2020.
As revealed, the firm made the purchase for $87,974 per Bitcoin. As of Feb. 1, the company reported that it HODLs a total of 713,502 BTC. It acquired this stash for approximately $54.26 billion at a valuation of $76,052 per Bitcoin.
This average cost per Bitcoin has placed Strategy in an impossible spot amid the dwindling price of the coin. As of press time, the price of Bitcoin was changing hands at $77,843.32, down 0.73% in the past 24 hours.
As the price crashed over the weekend, BTC fell below the company’s average purchase price, a twist that threatens its investors. Despite this intense sell-off, Michael Saylor and company executives have reiterated plans to continually buy Bitcoin as a strategic long-term asset.
More firms buying Bitcoin dip
Michael Saylor’s is not the only bullish firm betting on Bitcoin. Binance exchange has also announced the purchase of $100,000,000 million worth of Bitcoin as part of its reserve strategy.
While the general outlook of the market signals intense sell-off and volatility, pro-BTC firms are seeing a discount in the price of the coin.
Notably, this positive disposition does not excuse the accrued losses incurred thus far. From its most recent Bitcoin purchase, Strategy has recorded more than $1 billion in unrealized losses.
This drawdown has spread to other crypto treasury firms like Tom Lee’s Bitmine. On-chain data from Lookonchain shows that Bitmine is the largest Ethereum loser, with its portfolio down by over $6 billion.
Ahead of recovery expectations, many in the industry are watching Strategy and its funding model, especially as its stock price is in free fall. Per Google News data, MSTR stock was trading at $138.62 in pre-market, down by over 7% in 24 hours.
Source: https://u.today/saylors-strategy-places-new-753-million-bet-on-bitcoin
