A Japanese listed company disclosed its Bitcoin operations in the third quarter: it sold 10,000 coins, then bought back 11,000, netting an additional 1,000 coins, bringing its holdings to 44,000 coins.
CEO Simon Gerovich said this was a liquidity demonstration. The cash amount returned exceeded the principal of the company’s total bonds and loans, used to show creditors and investors that this asset can be liquidated at any time. After the money is received, it stays on the books, and then the company buys back more coins at a higher price.
The average-price spread made this round trip cost about $73 million less. The company nevertheless chose to buy holdings at an even higher level. During the same period, its asset allocation was adjusted so that 85% to 90% remains in Bitcoin, while the rest goes to assets that can generate cash flow.
$BTC is currently around $81,000, down 2.66% over the past 24 hours. The cost basis for 44,000 coins is approximately $4.33 billion, with an average price of $98,000, which is still higher than the spot price. Bitcoin on institutional ledgers is beginning to take on the role of generating cash flow.
CEO Simon Gerovich said this was a liquidity demonstration. The cash amount returned exceeded the principal of the company’s total bonds and loans, used to show creditors and investors that this asset can be liquidated at any time. After the money is received, it stays on the books, and then the company buys back more coins at a higher price.
The average-price spread made this round trip cost about $73 million less. The company nevertheless chose to buy holdings at an even higher level. During the same period, its asset allocation was adjusted so that 85% to 90% remains in Bitcoin, while the rest goes to assets that can generate cash flow.
$BTC is currently around $81,000, down 2.66% over the past 24 hours. The cost basis for 44,000 coins is approximately $4.33 billion, with an average price of $98,000, which is still higher than the spot price. Bitcoin on institutional ledgers is beginning to take on the role of generating cash flow.