It’s like if your uncle who insists on holding on to his 1970s suits agreed to a garage sale. The company Strategy, whose business model is buying Bitcoin with money raised from investors and vowing to never sell it…sold $216 million of the cryptocurrency at a loss recently.
So, why now? Strategy took a hit after the price of Bitcoin plummeted almost 50% from its peak last October, sending Strategy’s stock down 75% in the past year. This week, the company reported an $8.3 billion loss in Q2 from the eroding value of its crypto holdings. Now, Strategy is offloading Bitcoin to pay back shareholders and build up its US dollar reserves.
It’s selling the dip: While the company bought its Bitcoin at an average of $75,476 per token, it sold it in two waves last week for $59,256 and $60,773.
But Strategy still owns 843,775 Bitcoin, amounting to about 4% of the market’s supply and making it one of the world’s largest corporate holders of the asset.
There may still be reason to HODL: The Bitcoin behemoth ditching its never-sell credo temporarily dented the token’s price. But Bitcoin got a boost on Monday after President Trump called himself “a big crypto guy,” when asked whether the asset will be included in the federally-seeded investment portfolios for newborns aka Trump Accounts.—SK
Source: Original Article
