TLDR
- JPMorgan raised its Strategy holdings by 36% to 848,932 shares as of Sept. 30.
- The stake was worth about $131.3 million then but about $97.1 million at Thursday’s close.
- The bank’s position in BlackRock’s bitcoin ETF rose 9.6% to 11.4 million shares, worth about $540 million.
- JPMorgan also held 1.58 million Coinbase shares, a stake in Robinhood, and positions in five bitcoin miners.
- Bitcoin fell 7% in 24 hours to $68,408, its lowest level since Aug. 20.
JPMorgan Chase raised its stake in Strategy by 36% in the third quarter, but those shares have lost much of their value since then. The bank held 848,932 shares as of Sept. 30, according to its latest 13F filing with the U.S. Securities and Exchange Commission.
The bank bought 224,545 shares during the three months ending in September. It had held 624,387 shares as of June 30. The purchase lifted its position by a little more than a third.
At the end of the quarter, the stake was valued at about $131.3 million. Strategy shares traded near $155 at that time. The company is best known for holding a large amount of bitcoin on its balance sheet.
Strategy Stake Shrinks in Value
Strategy shares closed Thursday at $114.41, down about 6.5% on the day. The stock has now lost about 26% since the end of September. That works out to a drop of roughly $40 per share.
At Thursday’s closing price, the bank’s reported stake would be worth about $97.1 million. That is roughly $34 million less than its value at the end of the quarter.
These numbers use the share count from Sept. 30. The bank may have bought or sold Strategy shares since then. Any changes would appear in its next quarterly report.
JPMorgan also grew its position in BlackRock’s spot bitcoin exchange-traded fund, the iShares Bitcoin Trust. It held 11,408,930 shares of the fund worth about $540 million at the end of September.
That was up 9.6% from 10,407,635 shares at the end of June. The bank added 1,001,295 fund shares over the quarter.
The $540 million value works out to roughly $47 per fund share at the end of September. The fund tracks the price of bitcoin, so its value rises and falls with the cryptocurrency.
Coinbase, Robinhood and Miners on the List
The bank’s crypto-related holdings went beyond Strategy and the bitcoin fund. It held 1,581,814 shares of Coinbase, which runs the largest crypto exchange in the U.S.
JPMorgan also reported a stake in Robinhood. The trading app lets its users buy and sell both stocks and crypto.
The bank held positions in five bitcoin mining companies. These were Core Scientific, MARA Holdings, Riot Platforms, Hut 8 and CleanSpark.
Mining companies earn bitcoin by running computers that process transactions on the bitcoin network. Their revenue depends on the price of the coin.
Together, the holdings show the bank widened its exposure to both bitcoin funds and crypto stocks during the quarter. Its two largest increases came in Strategy and the BlackRock fund.
Strategy’s 6.5% fall on Thursday came on a day when bitcoin also dropped sharply. Shares of the company tend to move with the price of the coin it holds.
Bitcoin fell 7% over the past 24 hours to $68,408. That is its lowest level since Aug. 20, almost three months ago.
The post JPMorgan’s Strategy Stake Loses $34 Million in Value After 36% Share Increase appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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