Interestingly, after a series of buying and selling in recent weeks, the company was left with a net gain of just 69 bitcoins despite having deployed approximately $20 million in additional capital, cryptocurrency trader KALEO said on
Strategy now owns 843,775 bitcoins purchased at an average price of $75,476, maintaining its position as the largest corporate holder of the publicly traded cryptocurrency.
Despite the losses, today’s decision to sell millions of dollars worth of bitcoin will likely signal to investors that Strategy will do whatever it takes to protect its dividend on its high-yield preferred stock, Stretch (STRC), whose dividend now sits at 12% after a recent 50 basis point increase.
In fact, while bitcoin and Strategy common stock MSTR are lower on Monday, STRC continues to recover from last week’s low below $75, rising another 2.1% to just below $90.
The ‘strategy’
Given the zigzags in strategy in recent weeks, the company’s near-term capital allocation has become more difficult for investors to predict. Assuming relatively stable prices for BTC, MSTR, and STRC, it’s probably safe to say that bitcoin purchases are off the table for the foreseeable future.
