Strategy is to raise money through the sale of shares and use it to add more Bitcoin [BTC] to his arsenal! As it stands now, sentiment is weak and investors are not yet completely back in profit-taking mode. Therefore, the timing here is very strange.
Strategy sells… and also buys!
Between June 15 and June 21, Strategy sold 2.71 million MSTR shares through its at-the-market program. They raised $335.5 million in net proceeds. The company then used some of that capital to purchase 520 BTC for $34.9 million, at an average price of $67,068 per Bitcoin.
As of June 21, the company held 847,363 BTC, purchased for a total of $64.1 billion at an average cost of $75,651 per coin. Dollar reserves also rose to $1.4 billion.
Is the market very vulnerable?
Don’t let Strategy fool you, though, because the market doesn’t look right as if it is still recovering.
At the time of writing, Bitcoin’s adjusted SOPR is still struggling around the key level of 1. Going above 1 usually means investors are selling coins at a profit, while a move below 1 means losses are still being realized.
However, there seemed to be no confirmation on the charts.
Long-term holders’ profit-taking has also weakened, so the market may even still be resetting.
Until the aSOPR regains 1 and stays above that, buying Strategy is certainly just buying the dip.
Bitcoin still needs a better pace
Bitcoin’s price bounced back to almost $64,300, but the recovery is not yet strong enough to call it a major reversal.
The RSI was around 42, with the pace improving from weaker levels, but still below the bullish zone. The CMF was also almost neutral, but negative at -0.02. Although capital inflows seemed to improve, buyers have not asserted any dominance so far.
An increase would make the recovery more convincing. Until then, Bitcoin risks remaining a fragile recovery.
Final summary
- Strategy sold $335.5 million worth of MSTR stock; used the proceeds to purchase another 520 Bitcoin.
- The Bitcoin market remains as vulnerable as ever.