Michael Saylor posted "We're Back" on X on Sunday, hinting that Strategy, the company he leads as executive chairman, was returning to bitcoin purchases after a pause of about two months. On Monday the company said it had bought 4,603 bitcoin for $369.7 million the previous week, an average price of $80,318 each and its first purchases since late June, CoinDesk reported.
What was in the post? In the post, which Decrypt reported went up early Sunday, Saylor shared a chart of Strategy's holdings alongside the two-word message. The company typically announces its weekly purchases on Monday mornings, and his weekend teasers have historically preceded those announcements. Saylor did not say in the post whether a purchase was imminent.
Why had Strategy stopped buying? Starting in May, the company sold some of its bitcoin to bolster its balance sheet, then halted those sales and sold MSTR shares instead to build U.S. dollar reserves and buy back its STRC preferred stock, CoinDesk reported. Management spent the pause, as Cointelegraph reported, stabilising its preferred stock offerings, building a $5.1 billion U.S. dollar reserve and introducing a dedicated $1.59 billion cash pool generated through common stock offerings. Strategy recently raised $334 million selling MSTR stock without touching its bitcoin, part of a move toward what it calls a capital-management framework, Decrypt reported.
Where does bitcoin stand? On Sunday bitcoin climbed to around $79,007, which Decrypt reported put Strategy's 840,447 coins at roughly $66.4 billion, more than $2.8 billion above their average purchase price of $75,653. The recovery put the position back in profit for the first time in months. In July, when bitcoin sagged toward $58,000, the holdings had been roughly $13 billion underwater. Bitcoin had slid as low as $76,877 on Friday after Federal Reserve Chair Kevin Warsh warned that inflation was not cooling fast enough, and it remained well below its October record near $126,000.
How was the purchase funded? The buy was paid for with proceeds from a sale of common stock, with the remainder going to $151.8 million of STRC buybacks and to the company's cash reserves, CoinDesk reported, citing a Monday press release. Strategy now holds 845,050 bitcoin acquired for $63.73 billion, an average of $75,412 each. Its shares were up 1.65% in pre-market trading, with bitcoin at $78,400.
Figures referenced: Michael Saylor. — JudgeMarket.
