Bitcoin: Michael Saylor revives speculation about a new purchase

Strategy would have acquired bitcoin for the first time since June 22 according to Michael Saylor. The company’s president broadcast a short message while BTC was near $79,000. However, no acquisition, amount or average price has been published. This announcement comes after four successive sales that decreased Strategy’s reserves by 6,916 BTC since their last peak.

Two words revive speculation about a purchase

An image of Strategy’s purchase tracking table was published on the social network X on August 30 by Michael Saylor followed by the message: “we are back”. This statement is interpreted as the indicator of a new acquisition of BTC.

However, the wording does not mean an official confirmation. The president of Strategy did not disclose the number of bitcoins involved, the amount spent, or the period of the possible transaction. Only the publication of a document by the company will certify this purchase.

The essential figures from the Strategy register allow us to follow this period without acquisition chronologically:

• The last purchase dates back to June 22 and involved 520 BTC;
• Strategy had spent about $35 million;
• The company then sold 6,916 BTC in four transactions;
• Its reserves currently stand at 840,447 BTC.

Following the June 22 acquisition, Strategy owned 847,363 BTC. She sold 1363 BTC on June 30, then 2225 BTC on July 6. Two more sales of 1638 and 1690 BTC were made on August 3 and 10.

A new purchase would therefore symbolize a change of direction after approximately ten weeks without an acquisition. It would not necessarily mean that Strategy is definitively abandoning disposals. Recent transactions reveal that the company is now using its bitcoins as an active part of its balance sheet management.

Strategy has $6.69 billion in cash

The company has useful resources for financing a new purchase. Thus, during the week ended August 23, it raised nearly $2 billion through the sale of 18.26 million MSTR shares.

Strategy then had $5.1 billion in its reserve dedicated to paying dividends and interest. It had also placed $1.59 billion in a new, more flexible reserve, called “USD Cash”. Its overall liquidity was therefore around $6.69 billion.

This sum will not immediately go to bitcoin. Strategy can use this reserve to buy BTC, reacquire your own securities, repay convertible bonds or consolidate your dollar reserve.

Michael Saylor’s company primarily repurchased $136.4 million of STRC preferred stock during the week of August 23. She wants to bring their price back to around the nominal value of $100. This transaction automatically competes with BTC acquisitions for the use of available cash.

However, Strategy has reduced part of its financial risk. Its $6.69 billion in dollar assets nearly covers its $6.75 billion in convertible debt. Its main reserve therefore makes it possible to finance approximately four years of dividends on preferred shares.

Strategy reserves are worth more than their acquisition cost

His holdings are set at 840,447 BTC in the official Strategy registry. The company purchased them for almost $63.36 billion, or an average price of $75,385 per bitcoin.

Thanks to a price close to $79,000, these reserves were worth nearly $66.4 billion. Their market value therefore went beyond their purchase cost of almost 3 billion dollars. This difference remains sensitive to variations in BTC and does not constitute a profit received.

Since its low on Friday when Saylor broadcast his message, bitcoin has rebounded more than 2.5%. He had therefore recovered part of the losses triggered by the restrictive speech of the president of the Federal Reserve, Kevin Warsh, at Jackson Hole.

This rebound does not justify that Strategy contributed to the movement. Indeed, Saylor’s statement appeared after the resumption and does not show any execution date. The company’s next announcement should indicate whether an acquisition actually took place, as well as its influence on the 840,447 BTC currently held.