Bitcoin is now sitting right on Strategy’s cost basis: $75,451.
Strategy holds 849,000 bitcoins. Its average cost, disclosed on November 2, is $75,451. Bitcoin is now trading around $75,500, essentially at breakeven.
Interestingly, on the very same day Bitcoin fell to that cost basis, Strategy resumed issuing STRC preferred shares after a pause of more than 170 days. The first round raised enough to buy more than 120 bitcoins. STRC issuance had been halted after its price fell below the $100 offering price. As soon as the price recovered, the financing channel reopened.
Meanwhile, the aggregate cost basis of U.S. spot Bitcoin ETFs is about $81,500. Bitcoin is already 6.7% below that level, leaving ETF holders underwater overall.
In my view, Strategy’s STRC relaunch shows that the biggest buyer hasn’t stopped buying. But if Bitcoin’s daily close falls below the $75,451 cost basis, the biggest buyer will be sitting on paper losses, and the institutional-buying-the-dip narrative will no longer hold up. Tonight’s 21:30 nonfarm payrolls report is the first test.
Invalidation level: Bitcoin’s daily close falls below $75,451, or climbs back above $77,000.
What do you think will happen after tonight’s nonfarm payrolls report: will Bitcoin hold the $75,000 cost-basis level, or fall further along with U.S. stocks?
$BTC
#StrategySTRCResumesIssuanceAfterOver170Days #ADPUSPrivateEmployersAdd86000JobsInOctober
Strategy holds 849,000 bitcoins. Its average cost, disclosed on November 2, is $75,451. Bitcoin is now trading around $75,500, essentially at breakeven.
Interestingly, on the very same day Bitcoin fell to that cost basis, Strategy resumed issuing STRC preferred shares after a pause of more than 170 days. The first round raised enough to buy more than 120 bitcoins. STRC issuance had been halted after its price fell below the $100 offering price. As soon as the price recovered, the financing channel reopened.
Meanwhile, the aggregate cost basis of U.S. spot Bitcoin ETFs is about $81,500. Bitcoin is already 6.7% below that level, leaving ETF holders underwater overall.
In my view, Strategy’s STRC relaunch shows that the biggest buyer hasn’t stopped buying. But if Bitcoin’s daily close falls below the $75,451 cost basis, the biggest buyer will be sitting on paper losses, and the institutional-buying-the-dip narrative will no longer hold up. Tonight’s 21:30 nonfarm payrolls report is the first test.
Invalidation level: Bitcoin’s daily close falls below $75,451, or climbs back above $77,000.
What do you think will happen after tonight’s nonfarm payrolls report: will Bitcoin hold the $75,000 cost-basis level, or fall further along with U.S. stocks?
$BTC
#StrategySTRCResumesIssuanceAfterOver170Days #ADPUSPrivateEmployersAdd86000JobsInOctober
