Strategy’s Bitcoin Is $2.8 Billion in Profit—Is Saylor Teeing Up a Buy?

Strategy's Bitcoin holdings are currently valued at approximately $66.4 billion, marking a 4.4% gain for the firm, based on the recent price of Bitcoin reaching around $79,007. This value represents a substantial paper profit, more than $2.8 billion, on the initial investment. In a recent X post, Strategy's CEO Michael Saylor shared a chart of the company's Bitcoin holdings with the caption: "We're Back."

This marks a turnaround from a volatile few months when the company's Bitcoin holdings were nearly underwater, worth only around $13 billion in July when Bitcoin's price plummeted to around $58,000. The recovery in Strategy's Bitcoin position has been closely tied to the broader rise in Bitcoin's price from around $62,000 to the high $70,000s, propelled by significant inflows into spot Bitcoin ETFs and a softer dollar.

Saylor's message has sparked speculation on social media that Strategy might resume buying, a move typically hinted at through his characteristic X charts ahead of weekly purchase announcements. However, the company has not made any new purchases in the past two months, a noticeable pause for a firm that has historically been aggressive in its accumulation, adhering to Saylor's "never sell" philosophy.

This pause reflects a strategic shift for Strategy, which has recently raised $334 million through the sale of MSTR stock, without touching its Bitcoin holdings. This move is part of a broader shift towards a capital-management framework. The company has even sold small amounts of Bitcoin in recent months to fund preferred dividends and buybacks, a departure from its long-held buy-and-hold strategy.

The potential for renewed buying would be challenging in the current market, as Bitcoin has slipped to around $76,877 following warnings from Federal Reserve Chair Kevin Warsh about the insufficient cooling of inflation, which has increased the odds of September rate hikes. Despite this, Bitcoin remains far below its October record near $126,000, keeping Strategy's gains modest relative to its peak. Saylor did not clarify in the post whether a renewed purchase is imminent.