TLDR Strategy’s Bitcoin holdings remain profitable despite Bitcoin’s recent price drop below $92,000. The company’s average purchase price for Bitcoin is significantly lower than the current market price, providing a cushion against volatility. Despite market fluctuations, Strategy continues to accumulate Bitcoin and dismisses the idea of selling during market stress. The CryptoQuant uPnL chart shows that Strategy’s holdings have remained in profit even after past market crashes. Prediction markets are pricing in a further Bitcoin price decline, but Strategy’s Bitcoin strategy remains unchanged. Bitcoin’s recent drop below $92,000 has raised concerns about the sustainability of Michael Saylor’s BTC holdings under the Strategy. Despite the price decline, a CryptoQuant chart shows that the Strategy’s holdings remain in profit, even after multiple market crashes. The company has maintained an aggressive Bitcoin accumulation strategy, dismissing volatility as a temporary concern. However, recent developments are testing investor confidence. Strategy’s Bitcoin Holdings Remain Profitable Despite Market Decline CryptoQuant’s unrealized profit and loss (uPnL) chart, which tracks Strategy’s Bitcoin position since 2020, paints a positive picture. Despite Bitcoin’s recent price drop of over 13% in the past week, Strategy’s holdings still show substantial unrealized gains. The chart shows persistent green bars, indicating that the company’s Bitcoin bet remains profitable even through multiple market dips. During past crashes, such as in 2021 and 2022, there were brief periods of unrealized losses, marked by red zones on the chart. However, these losses were short-lived and quickly reversed. “The company’s average purchase price for Bitcoin is well below the current market price, giving them a significant cushion against volatility,” said an industry analyst. Even with the ongoing sell-off, Strategy continues to hold and accumulate Bitcoin. Michael Saylor has made it clear that his company will not sell its Bitcoin holdings, despite market fluctuations. “Bitcoin is an exponential treasury asset,” Saylor stated. He believes that, in the long run, Bitcoin will outperform other assets, including gold. Bitcoin’s Decline Raises Concerns Over Sell-Off Risks Bitcoin has fallen by more than 16% over the past six months, and recent price action is testing investors’ resolve. The current market downturn has heightened fears among traders. Recent events, including the movement of Bitcoin from the Mt. Gox wallet to Kraken, have sparked rumors of further sell-offs, adding to market uncertainty. The sell-off has contributed to increased volatility and growing concerns about Strategy’s balance sheet. While the company’s BTC holdings are still in profit, the broader market remains under pressure. Prediction markets are now pricing in the possibility of Bitcoin dropping below $80,000, with odds increasing to 38%.
https://blockonomi.com/bitcoin-price-drop-tests-strategy-btc-holdings-but-gains-persist/
Tag Archives: bitcoin accumulation strategy
El Salvador Makes Biggest-Ever Bitcoin Purchase as Prices Hit Multi-Month Low
El Salvador has made headlines once again after revealing its biggest-ever single-day Bitcoin purchase. Even as the market bleeds and Bitcoin trades at its lowest levels in months, the country doubled down on its strategy, strengthening the “buy the dip” narrative. On Monday evening, El Salvador added 1, 090 BTC worth roughly $100 million to its reserves. This pushed the nation’s total holdings to 7, 474 BTC, now valued at around $676 million. President Nayib Bukele shared the update on X, reinforcing the country’s commitment to growing its Bitcoin treasury despite strong market pressure. El Salvador Buys Bitcoin During the Dip Bitcoin briefly dropped below $90,000, touching its lowest level since April. El Salvador seized the opportunity, continuing its pattern of accumulating larger amounts whenever prices fall. The government has been stacking Bitcoin consistently since November 2022 through its “1 BTC per day” strategy, and Monday’s major addition aligns perfectly with its long-term accumulation plan. IMF Agreement Conflict Raises Questions The latest purchase comes against the backdrop of El Salvador’s $1. 4 billion IMF agreement, which requires the public sector to stop making new Bitcoin purchases. Earlier this year, finance officials stated that no Bitcoin had been bought since February-directly contradicting Bukele’s public announcement. An IMF report added further complexity, noting that increases in Bitcoin reserves could come from internal wallet movements or consolidations, not necessarily new purchases. This leaves the origin of the 1, 090 BTC open to interpretation. Bitcoin Office Defends Government Strategy Despite the conflicting statements, El Salvador’s Bitcoin Office maintains a firm stance. Stacy Herbert, head of the office, emphasized that the blockchain itself records and verifies the nation’s Bitcoin activity. Her comments highlight the government’s insistence that its accumulation efforts remain transparent and intentional. El Salvador Reinforces Long-Term Bitcoin Strategy The latest addition of 1, 090 BTC underscores El Salvador’s determination to continue treating Bitcoin as a long-term national asset. The government remains committed to buying dips, growing its treasury, and positioning Bitcoin at the center of the country’s economic vision. Despite external pressure, IMF restrictions, and differing interpretations, the nation’s Bitcoin accumulation strategy shows no signs of slowing.
https://coinpedia.org/news/el-salvador-makes-biggest-ever-bitcoin-purchase-as-prices-hit-multi-month-low/