MicroStrategy bought BTC at nearly the worst possible price last week
This morning, MicroStrategy (doing business as Strategy) announced that it diluted MSTR common shareholders by $285.7 million to buy $285.8 million of bitcoin (BTC). After deducting fees and expenses included in that purchase, shareholders received no BTC accretion to their shares. Not only that, after pausing purchases for the first week in April and warning that it might have to sell BTC next year, the firm then took a full week to buy BTC at nearly the worst possible prices it could have paid. Specifically, from April 7 to April 13, BTC traded at between $74,434 and $86,084. MicroStrategy then decided to deploy more than a quarter of a billion dollars at $82,618, within the top third most expensive part of that range. However, BTC didn’t trade evenly across that range during that time period, so a volume-weighted average price (VWAP) actually provides a better assessment of the firm’s market-timing abilities. In fact, BTC traded most of last week in t...