Bitcoin traded below Strategy's average purchase price on Sunday, Nov. 8, leaving the company's holdings worth less than their acquisition cost. The gap is roughly $500 million, but the company's filings say its bitcoin is unencumbered, so the dip does not by itself trigger a collateral shortfall.
Bitcoin traded below Strategy's disclosed average purchase price on Sunday, Nov. 8, putting the bitcoin treasury company's holdings underwater against their acquisition cost ahead of the U.S. equity futures reopening.
Coinbase's BTC-USD market recorded a trade at $74,862.89 at 4:54:36 p.m. ET, about 0.78% below Strategy's $75,451 average cost. The company's latest holdings update, filed Nov. 2, disclosed 849,327 BTC acquired for $64.08 billion as of Nov. 1, including fees and expenses.
At that spot price, the disclosed holdings were worth approximately $63.58 billion, according to The Defiant's calculation. That leaves roughly $500 million less bitcoin value than acquisition cost.
Cost basis is not a repayment deadline
Strategy's debt dashboard lists $6.71 billion of convertible notes, while its company dashboard also lists $13.14 billion of preferred stock. Those claims are distinct from the amount Strategy originally paid for its bitcoin.
However, the company reported in its latest quarterly filing that all its bitcoin was unencumbered as of Sept. 30, meaning it was not pledged as collateral. A spot price below purchase cost therefore does not, by itself, establish a collateral shortfall or an immediate repayment obligation.
Strategy also disclosed a $4.79 billion reserve as of Nov. 1, intended to support preferred dividends and interest payments. Separately, it held $132.7 million in cash available for broader treasury purposes, according to the Nov. 2 filing.
MSTR ended Friday's regular session at $128.93, down 0.29%, according to Strategy's dashboard. That close preceded Sunday's bitcoin quote and does not reflect a stock-market response to it.
The earliest scheduled holder put date for the convertible notes is Sept. 15, 2027, when holders of its $1.01 billion 2028 notes can require cash repayment, according to the quarterly filing.
Source: The Defiant
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