Michael Saylor, executive chairman of Strategy, has hinted that the company could acquire more Bitcoin (BTC) by posting the all-too-familiar acquisition chart with the caption โmore orange than ever.โ
The Bitcoin treasury company confirmed a 1,665 BTC purchase worth $142.7 million in a September 28 SEC filing, taking its total holdings to 847,666 BTC.
Michael Saylor Hints At Bitcoin Buy
Michael Saylorโs latest cryptic message has fueled speculation about another Bitcoin purchase announcement. Strategyโs last purchase between September 21 and September 27 saw the company purchase 1,665 BTC for $142.7 million, at an average cost of $85,681 per coin. However, Saylorโs post did not specify a date for the purchase or the number of BTC Strategy plans to acquire.
Strategy has resumed its BTC acquisitions after a ten-week pause. It ended its purchase hiatus in August by acquiring 4,603 BTC for $370 million. Saylorโs post comes after two back-to-back weekly purchases in September. Strategy announced it had purchased 950 BTC for $75.7 million on September 21, a day after Saylor posted a message teasing an impending purchase. Saylor posted a similar teaser on September 27, and Strategy announced a 1,665 BTC purchase worth $142.7 million the following day. The company currently holds 847,666 BTC worth around $72.5 billion.
Strategy Stock Program Funds Latest Acquisitions
Strategy funded its latest acquisition by selling its MSTR common stock. According to the companyโs SEC filing, it sold 1,469,165 MSTR shares for $246.2 million between September 21 and September 27, using $142.7 million for its latest BTC purchase, and $103.5 million to repurchase STRC preferred stock. It used a further $48.1 million from existing cash reserves to repurchase its STRC preferred stock.
Strategy currently has $5.02 billion in its US dollar reserve, and $1 billion in USD cash. It also has $18.84 billion worth of MSTR available for issuance, along with $17.51 billion in STRC, $4.01 billion in STRD, $2.1 billion in STRK, and $1.62 billion in STRF. According to Strategyโs market dashboard, its current mNAV is 1.20x, while MSTR is trading at $160 per share.
Strategyโs share sales are key to funding its Bitcoin acquisitions. However, while the strategy allows the company to raise funds for future purchases, it diminishes the proportional ownership for existing investors. Strategy must also strike a fine balance between purchases and capital required to meet debt obligations.
Capital Returns To Bitcoin
Strategyโs latest Bitcoin (BTC) acquisition comes as spot Bitcoin ETFs continue to register sustained inflows. The ETFs have recorded just one day of outflows in the past 10 sessions, attracting over $2.62 billion in that time. According to a CryptoQuant Quick Take, spot Bitcoin ETFs have added 88,000 BTC since July, with the price climbing from around $59,500 to $85,000 by October 4.
CryptoQuant CEO Ki Young Ju struck a bullish note when discussing the current cycle with analyst XWIN Japan, stating he believes the bear market ended in the summer and a new cycle is beginning. XWIN Japanโs report highlights reduced selling from whale addresses, stronger inflows into accumulation addresses, and a favorable MVRV profile as key factors behind BTCโs latest price action.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
