Michael Saylor Posts Strategy’s 849,327-Bitcoin Purchase Chart, Sparking Fresh Buy Speculation
Summary
- Michael Saylor disclosed a chart showing Strategy’s 849,327 BTC in Bitcoin holdings and an estimated value of about $64.44 billion.
- Strategy said it has made 120 Bitcoin purchases since August 2020, with an average purchase price of $75,446.
- Attention is focusing on the possibility of raising funds for Bitcoin purchases through new share issuance after floating-rate preferred stock STRC recovered to $100.
Forecast Trend Report by Period
Michael Saylor, chairman of Strategy, disclosed the company’s Bitcoin holdings, drawing fresh attention to whether it may make another purchase.
Bitcoin.com reported on Nov. 8 that Saylor posted a chart on X showing Strategy’s Bitcoin purchase history along with the message, “Connecting the dots.” The chart showed total holdings of 849,327 BTC valued at about $64.44 billion.
Strategy has bought Bitcoin 120 times since August 2020. Its average purchase price was about $75,446. That compares with the average purchase price of $75,451, including fees and expenses, that Strategy disclosed on Nov. 2.
Saylor posted a similar chart on Nov. 1. At the time, Strategy held 848,517 BTC. The company said the following day that it had bought another 811 BTC for about $65.5 million. The purchase was made between Oct. 26 and Nov. 1 at an average price of $80,846.
Still, posting the chart does not necessarily lead to another purchase. Saylor also shared the company’s purchase status in July, but Strategy did not add to its Bitcoin holdings at that time. Instead, it moved to redeem preferred shares and increase its cash holdings. As a result, this post alone is not enough to conclude that a new purchase is coming.
The value of Strategy’s Bitcoin holdings has fallen as the cryptocurrency’s price declined. While the company’s Bitcoin balance increased from a week earlier, the value of those holdings dropped to about $64.44 billion from roughly $66 billion. Based on its current holdings, every $1,000 move in Bitcoin’s price changes the total value of its position by about $849.3 million.
Attention is also turning to Strategy’s capacity to raise funds for additional purchases. Its floating-rate preferred stock, STRC, recovered to $100 as of Nov. 4. If STRC trades at or above that level, the company could raise money for Bitcoin purchases through a new share issuance, though any actual issuance and purchase would depend on market conditions and the company’s decision.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.