Strategy Sold Bitcoin at $60K and Then Bought It at $80K. That's Why I'm Not Buying Bitcoin Treasury Companies Right Now.
Right now, Bitcoin treasury companies are a clear stay-away.
Overview
When investing, a fundamental principle has always been to "buy low, sell high." In other words, pick up an asset at a low price and then sell it at a higher price. That's true for equities, and it's also true for Bitcoin (CRYPTO: BTC).
That's why I'm so concerned about the Bitcoin treasury companies right now. They are turning that core piece of investment logic on its head: They are buying high and selling low. From my perspective, that makes them very unattractive investment targets.
Details
To see this dynamic in action, consider what happened to Strategy (NASDAQ: MSTR), formerly known as MicroStrategy, this summer. From June 30 to Aug. 10, the company sold Bitcoin four times, at prices ranging from $59,256 to $64,262. For the sake of argument, let's call this $60K.
Source
Originally published at www.fool.com.