Strategy ended a 10-week buying pause by purchasing 4,603 Bitcoin for $370 million in late August, lifting its total holdings to 845,050 coins. The purchase follows two rounds of selling earlier this year and comes as Bitcoin trades well below its all-time high.
Strategy resumes buying after two rounds of selling
Strategy bought 4,603 Bitcoins for $370 million in late August, ending a 10-week pause in purchases. The move follows a stretch in which the company sold roughly 7,000 Bitcoins at average prices between $60,000 and $65,000 across March and August, a pattern that left many investors thinking darker days were ahead for Bitcoin.
However, Strategy CEO Phong Le said the company remained bullish on Bitcoin, adding that it sold only to cover its preferred dividends and reduce debt. Founder and executive chairman Michael Saylor has said he believes Bitcoin's price could reach $21 million within the next 20 years.
Holdings now exceed the company's market value
The August purchase pushed Strategy's total Bitcoin stack to 845,050 coins, worth $68.5 billion as of the report. That figure exceeds the company's market cap of $47.3 billion and its enterprise value of $50.3 billion, leaving Strategy trading at a discount to its own Bitcoin holdings.
Elevated Treasury yields and rising interest rates could still chill the crypto market and push investors toward more conservative assets, tempering the near-term case for Strategy shares to close that gap.
Bitcoin remains well off its record
Bitcoin has risen nearly 30% over the past month. It still stays 36% below its all-time high of roughly $126,000, reached last October. Therefore, the latest purchase does not fully offset Strategy's earlier sales, and it's premature to call it a green flag for Bitcoin's next move higher.
Longer term, Bitcoin's next halving is due in 2028, which will cut mining rewards further. Meanwhile, the soaring U.S. national debt recently hit $40 trillion, which could push the Fed toward more aggressive "Fiscal Dominance" strategies that debase the dollar's purchasing power — a dynamic that would make Bitcoin and other large cryptocurrencies more attractive as a hedge.
Source: Motley Fool
Trading involves risk.
Risk Disclaimer
