Saylor Signals More Bitcoin Buying as Strategy’s Unrealized Loss Hits $8.46 Billion
Summary
- Michael Saylor, chairman of Strategy, signaled the company may buy more Bitcoin despite the cryptocurrency’s sharp drop.
- Strategy posted an unrealized loss of about $8.46 billion as Bitcoin fell, and said its average purchase price was $75,456.
- Strategy’s removal from the MSCI index has drawn attention to possible fund selling, its share price, and fundraising conditions.
Forecast Trend Report by Period
Michael Saylor, chairman of Strategy, signaled the company may buy more Bitcoin despite the cryptocurrency’s sharp drop.
Bitcoin.com reported on November 15 that Saylor shared a chart on X showing Strategy’s Bitcoin purchases and wrote that "this dip may need a little more orange." The orange dots on the chart mark the company’s Bitcoin purchase points, and the market interpreted the post as a signal of another buy.
Saylor has posted similar charts before and later announced additional Bitcoin purchases. Strategy bought 1,036 Bitcoin for about $81.9 million between November 2 and November 8, bringing its total holdings to 850,364 Bitcoin. On the same day, Strive Chief Executive Officer Matt Cole also signaled buying interest, saying Bitcoin was cheap and that he wanted to buy more.
Still, Strategy’s unrealized loss has widened as Bitcoin declined. According to the chart Saylor shared, the company’s Bitcoin holdings were worth about $55.7 billion, or $8.46 billion less than their total purchase cost of $64.16 billion. Strategy said in a filing on November 9 that its average Bitcoin purchase price, including fees and other costs, was $75,456.
Strategy’s Bitcoin holdings account for about 4.05% of Bitcoin’s 21 million token supply cap. Based on its holdings, every $1,000 move in Bitcoin’s price changes the value of those assets by about $850 million. Bitcoin traded as low as $62,479 on November 15 and was down 16.27% over the past week, according to Bitcoin.com.
Separately, Strategy is set to be removed from MSCI’s US indexes. In MSCI’s November index review, Strategy’s Class A common stock was included among 24 names slated for deletion from the US index. The changes will take effect after the market closes on November 30.
That has raised the prospect of selling by funds that track MSCI indexes. Strategy previously said MSCI-linked funds held 13 million shares of its common stock, equal to about 3.1% of the total. With Bitcoin-related unrealized losses mounting and the MSCI deletion ahead, attention is turning to Strategy’s share price and fundraising conditions.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.