Strategy Bitcoin strategies will continue to be geared towards holding onto BTC for the long run, even after the firm sold about 7,000 BTC at low prices and went back to the market at a value of $80,000.
The Strategy CEO, Phong Le, explained his reason for making this move in an interview with Bloomberg TV on Tuesday. “It’s not about the Bitcoin price; it’s about capital cost and finance requirement. We sold our BTC in the range of $60,000 to $65,000 and repurchased at $80,000.”
Le stated that the sale of Bitcoin assisted in funding dividends tied to the preferred stock of Strategy. The deal was a sound decision from a finance perspective, just as buying Bitcoin was currently a good decision for the company.
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Strategy Bitcoin Strategy Takes a Two-Way Approach
The purchase of Bitcoin was on hold for nearly 10 weeks as the company focused on building its balance sheet. In the process, it brought down net debt to zero from $7 billion and accumulated close to $7 billion in cash.
Le stressed that although Strategy is a “net accumulator,” the company has developed a “two-way strategy.” With this strategy, the firm can continue accumulating Bitcoin even as it sells part of the cryptocurrency to cater to its dividend payments and other financial needs.
This latest move involves less than 1% of the Strategy Bitcoin holdings. According to Le, the firm has been able to accumulate 30% more Bitcoin this year.
Strategy Adds 4,603 Bitcoin
Strategy acquired 4,603 BTC worth around $369.7 million at a cost of approximately $80,318 per Bitcoin.
As a result of this acquisition, the total number of BTC holdings by the company rose to 845,050 BTC, which is now worth around $65 billion. This acquisition makes Strategy among the biggest corporate holders of Bitcoin.
Le says that even if BTC hits $90,000, $100,000, or even $130,000, Strategy can keep acquiring Bitcoin because the company’s decisions will be influenced more by capital economics rather than the price of BTC.
Such a strategy can be applied in that, provided that the financing conditions justify it, Strategy can continue purchasing Bitcoins at higher prices.
Bernstein Reduces Strategy Price Target
In turn, analysts at Bernstein gave Strategy a rating of Outperform; however, cut their price target from $450 to $350 for Strategy.
Moreover, analysts predict that by mid-2027 the price of Bitcoin will go up to $150,000. For Strategy, the future depends a lot on how the company can manage Bitcoin accumulation, financing costs, dividend payments, and cash on hand.
At the time of writing, Bitcoin is trading at $ 76,766 with a 24-hour trading volume of $ 66.03 billion and a market cap of $ 1.54 trillion. BTC price decreased by 1.70% over the last 24 hours.
According to Le’s statements, Strategy Bitcoin plans to keep accumulating BTC while having enough maneuverability to sell Bitcoin if the situation demands it financially.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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