Michael Saylor has reignited speculation about a new bitcoin acquisition by Strategy. Indeed, he published on October 4 a chart tracing the company’s purchases. However, his publication does
Michael Saylor has reignited speculation about a new bitcoin acquisition by Strategy. Indeed, he published on October 4 a chart tracing the company’s purchases. However, his publication does not represent an official announcement. Only an official statement from the group will confirm a new transaction.
By sharing his chart dotted with orange points, Michael Saylor specified: “more orange than ever”. Each dot represents a bitcoin purchase already published by Strategy.
Start your crypto adventure safely with KrakenThis link uses an affiliate program.Such an announcement resembles the messages that preceded the group’s last two acquisitions. It therefore fuels the hypothesis of a new transaction, without providing amounts, periods, or purchase prices.
The latest officially available figures are :
At the current price, the unrealized gain approached 8.1 billion dollars. However, this estimate can fluctuate rapidly with the bitcoin price and does not constitute a realized gain as long as the assets remain unsold.
Michael Saylor regularly uses his Sunday publications to prepare the market for an official communication. On September 20, he had released a first message while the group owned 845,050 BTC.
The very next day, the company announced the acquisition of 950 bitcoins for 75.7 million dollars. The average price of this transaction reached 79,670 dollars per unit, which raised Strategy’s reserves to 846,000 BTC.
A week later, the same scenario occurred. On September 27, Saylor wrote “even more orange” by publishing a new version of his chart. The next day, the group confirmed the purchase of 1,665 BTC.
This second transaction represented 142.7 million dollars. The bitcoins were acquired between September 21 and 27 at an average price of 85,681 dollars, including fees and expenses.
This repetition reflects the expectations triggered by the new message. However, it does not confirm that a purchase has already taken place. The group would also use this announcement to remind its cash strategy or maintain attention around its stock.
The net proceeds from ordinary share sales allowed Strategy to finance its latest purchase. Such a method allows the company to raise capital without immediately using its operating cash nor immediately incurring new debt.
However, it carries a cost for the group’s shareholders. Whenever the company issues new shares, their participation in the capital can be diluted. This operation creates value per share only if the bitcoin’s evolution and the financing conditions compensate for this dilution.
Strategy now combines several instruments to feed its reserve. The group can sell ordinary shares, issue preferred securities, or use part of its cash. This structure gradually transforms the company into a financial vehicle exposed to bitcoin.
As of September 27, Michael Saylor’s group also held a reserve of 5.02 billion dollars intended notably for the payment of preferred dividends and debt interests. An additional billion dollars remained available for its treasury operations.
These reserves show that the group does not automatically dedicate all its resources to bitcoin purchases. It must also cover its financial obligations and preserve its ability to withstand a prolonged market downturn.
With 847,666 BTC, Strategy controls a little more than 4% of the maximum supply of 21 million bitcoins. The company thus remains, by far, the largest publicly traded crypto holder.
This concentration gives each new operation an impact that goes beyond its own balance sheet. Strategy’s purchases reduce the amount of bitcoins immediately available on the market, even if their direct impact on the price also depends on the daily trading volume.
The average price of 75,437 dollars now represents an important benchmark for the group. A sustained drop below this level would reduce the value of its portfolio relative to its historical cost. It could also complicate future fundraising if the Strategy share lost part of its premium over its assets.
Conversely, a rise in bitcoin mechanically improves the value of reserves and can facilitate new financing. However, this mechanism remains market-dependent and does not guarantee that every issuance of securities will benefit shareholders.
