Saylor's Rebuy Fiasco Costs Strategy Over $100M
Strategy's $100M Opportunity Cost: Saylor's Rebuy Fiasco
In a bizarre move, Strategy has spent recent weeks reacquiring 5,553 of the BTC it sold between May and August for an average price of $62,150. The company repurchased these coins at an average price of $80,207 each, incurring an opportunity cost of over $100 million.
This roundtrip trade is particularly egregious considering that Strategy's initial sale was intended solely for media purposes, with Saylor stating that the company would 'inoculate the market' and send a message to news publications. He even went so far as to claim that selling BTC was equivalent to selling a 'derivative,' allowing the company to buy back in at will.
The rebuy has come at a steep price, with Strategy paying $445.4 million to replace the coins it sold for $345.1 million. The opportunity cost of this trade exceeds 29%, and the company's shareholders are likely feeling the pain as their investment gains have been significantly impacted by the decision.