Strategy founder Michael Saylor published a chart on X with the caption “Time to add dots”, and the mid-May precedent, when a similar post was followed by the purchase of 24,869 BTC for $2 billion, has forced the market to discuss preparations for a new round of investment amid a deep decline in both Bitcoin’s price and the company’s own stock.
Strategy CEO Phong Le added fuel to the fire by promptly supporting the post and officially stating that the company’s corporate strategy remains focused on increasing net Bitcoin holdings per share, while any other rumors have no basis.
The main question in the discussion now is how exactly the company would finance a possible deal. Its key debt instrument, STRC, has attracted 0 BTC over the past week, meaning Saylor would have to use other methods for purchases.
Saylor averages down into an multi-billion paper loss
Strategy currently holds 843,706 BTC, which is about 4% of the entire supply, and the net value of these assets has fallen to $52 billion, while the cost of buying them stands at $63.87 billion. Since the portfolio was accumulated at an average price of $75,702 per coin, Bitcoin’s drop from its $97,000 peak has left the company with an unrealized paper loss of almost $12 billion.
On the stock market, Strategy’s market capitalization stands at $42.3 billion, while the total value of the business is $61.8 billion. In addition to shares, the company’s digital-credit structure includes four debt instruments, STRC, STRD, STRF and STRK, with a combined value of $12.89 billion.
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The prime instrument, STRC, is currently trading at $93.17 with a yield of 12.34%. The fact that this instrument has stopped bringing in new Bitcoin indicates that Saylor will look for cash for purchases through alternative sources, from issuing other classes of bonds to using direct cash reserves.
There are no official documents on the deal yet, but the crypto market expects an announcement as early as Monday.