Indeed, while BTC and MSTR (Strategy’s common stock) are lower on Monday, STRC continues to rebound from last week’s low below $75, higher by another 2.1% and just shy of $90.
Strategy now holds 843,775 bitcoin purchased at an average price of $75,476, maintaining its position as the largest publicly traded corporate holder of the cryptocurrency.
Alongside today’s news of the sizable bitcoin sales, the company also disclosed that it had booked an $8.32 billion loss on its BTC holdings in the second quarter as the price fell from about $68,000 on April 1 to close June at roughly $60,000.
Going forward
Given the zig zags in strategy over the past few weeks, it’s anybody’s guess as to what comes next. It’s a big assumption, but assuming relatively stable prices for BTC, MSTR, and STRC, it’s probably safe to say that bitcoin buys are off the table for the foreseeable future.
As for sales, Strategy now has cash reserves exceeding 17 months of dividend coverage. Among preferred stock cognoscenti, companies with 18 months or more of coverage are considered to be in a good spot. While there may be more bitcoin sales, they would seem to need to be limited in size in the coming weeks.
Source: Original Article
