Strategy's $100M Mistake: Selling and Buying Back Bitcoin

Strategy, led by Michael Saylor, sold nearly 7,000 BTC between May and August this year. The sale was for 'media purposes', not due to financial necessity, according to Saylor. He stated that the company would sell BTC 'just to inoculate the market' and send a message to news publications.

The sale averaged $62,150 per coin, with Strategy re-buying 5,553 of those coins at an average price of $80,207 each. This roundtrip trade has resulted in an opportunity cost exceeding $100 million, as the company could have invested that amount during the BTC rally.

Strategy's rebuy was 29% more expensive than the original sale, with the company spending a total of $445.4 million to replace the sold coins for $345.1 million. The missing 1,363 coins would require another $100 million at current prices to be fully reacquired.

Saylor remains unapologetic about the decision, stating that it was 'the right trade at the time' and that there will be times when it makes sense to sell BTC. He attributes this strategy to the Digital Credit Capital Framework.