Bitcoin rebounds, and Strategy’s cost basis
Bitcoin climbs toward 84,000 $ : where does Strategy’s cost basis stand?
Bitcoin is trading around 83,800 $ this Monday. Over 24 hours, around 46.7 M$ worth of Bitcoin positions were liquidated, and over 12 hours short positions accounted for the majority: 15.89 M$ out of 22.19 M$ (CoinGlass, via The Crypto Times).
The figure people rarely mention: Strategy’s cost basis.
→ 848,000 BTC held as of October 4
→ Total cost: $63.97 billion, or an average price of 75,440.70 $ (October 5 8-K)
→ Latest purchase: 334 BTC between October 1 and 4, at $85,838.80
→ Current margin: around 11% (my calculation, with Bitcoin at $83,800)
The counterpoint: this summer, Strategy sold Bitcoin at prices below its average cost. DefiLlama notes three sales between July and August, at $60,773, 63,957 $ , and $64,262. The company then started buying again.
My analysis: a cost basis is not a floor. Strategy is under no obligation to buy or hold, as the summer shows. This level is still useful as a reference point for this major holder’s margin of safety, but not as guaranteed support. It’s a hypothesis, not a forecast.
This is not investment advice.
Do you think Strategy’s cost basis is a real support level, or a misleading reference point?#BitcoinReclaims$84K
Bitcoin climbs toward 84,000 $ : where does Strategy’s cost basis stand?
Bitcoin is trading around 83,800 $ this Monday. Over 24 hours, around 46.7 M$ worth of Bitcoin positions were liquidated, and over 12 hours short positions accounted for the majority: 15.89 M$ out of 22.19 M$ (CoinGlass, via The Crypto Times).
The figure people rarely mention: Strategy’s cost basis.
→ 848,000 BTC held as of October 4
→ Total cost: $63.97 billion, or an average price of 75,440.70 $ (October 5 8-K)
→ Latest purchase: 334 BTC between October 1 and 4, at $85,838.80
→ Current margin: around 11% (my calculation, with Bitcoin at $83,800)
The counterpoint: this summer, Strategy sold Bitcoin at prices below its average cost. DefiLlama notes three sales between July and August, at $60,773, 63,957 $ , and $64,262. The company then started buying again.
My analysis: a cost basis is not a floor. Strategy is under no obligation to buy or hold, as the summer shows. This level is still useful as a reference point for this major holder’s margin of safety, but not as guaranteed support. It’s a hypothesis, not a forecast.
This is not investment advice.
Do you think Strategy’s cost basis is a real support level, or a misleading reference point?#BitcoinReclaims$84K