Strategy Buys Back $17,800 Higher After Summer Sales

Strategy has resumed its Bitcoin buying spree after a 10-week pause. In late June and early August, the company sold nearly 6,916 BTC at an average price of $62,081 per coin, raising around $429-$432 million in cash. However, it turned out to be a costly move as Strategy bought back 4,603 BTC last week at an average price of $80,318 per coin, which is about $17,800 higher than the selling prices.

The purchase was funded by selling more shares, with Strategy raising $602.8 million from the sale of new MSTR shares via ATM. Despite the rotation, Strategy's Bitcoin holdings now sit at 845,050 BTC, worth over $66 billion at recent prices. The company has also boosted its USD cash reserves by $29 million and repurchased $152 million of STRC preferred stock in the same week.

Strategy's Digital Credit Capital Framework entails bolstering USD reserves for preferred stock dividends, improving BTC credit metrics, and providing flexibility for future Bitcoin treasury operations. Critics like Lookonchain called the timing of the move poor, but Strategy frames it as positive for its balance sheet and STRC metrics.