Let's talk about funding costs, here's something interesting.
Strategy (MSTR) has been aggressively buying Bitcoin since August 2020, holding nearly 6 years now, with a total of 815,061 BTC.
The cash acquisition cost is around $61.56 billion, with an average cost of $75,527/BTC.
The early positions have been held for nearly 6 years, while the later large buys were held for just a few months to 2 years.
If we calculate the compounded opportunity cost at the average U.S. interest rate of 4-5% over the past 5 years, Strategy's effective breakeven price would need to rise to around $82,000-$88,000.
This is about 8-15% higher than the pure cash cost.
Cash has a cost, and basic risk-free deposits in U.S. banks yield about 4-5%, which is more than what's being earned now.
Adding in borrowing costs, although they aren't high, the overall surface cost is $75,527. Considering the time factor, it’s estimated that it needs to rise to at least $90,000 to truly break even.
#加密市场反弹
$BTC
$ETH
$BNB
Strategy (MSTR) has been aggressively buying Bitcoin since August 2020, holding nearly 6 years now, with a total of 815,061 BTC.
The cash acquisition cost is around $61.56 billion, with an average cost of $75,527/BTC.
The early positions have been held for nearly 6 years, while the later large buys were held for just a few months to 2 years.
If we calculate the compounded opportunity cost at the average U.S. interest rate of 4-5% over the past 5 years, Strategy's effective breakeven price would need to rise to around $82,000-$88,000.
This is about 8-15% higher than the pure cash cost.
Cash has a cost, and basic risk-free deposits in U.S. banks yield about 4-5%, which is more than what's being earned now.
Adding in borrowing costs, although they aren't high, the overall surface cost is $75,527. Considering the time factor, it’s estimated that it needs to rise to at least $90,000 to truly break even.
#加密市场反弹
$BTC
$ETH
$BNB