Does Saylor’s latest message hide a Bitcoin purchase?

Strategy’s acquisition of bitcoin could resume after a two-week pause, according to a new message from Michael Saylor. In fact, the executive president of the company released the graph relating to the group’s purchases with a reference to the color orange, however no operation has yet been confirmed.

Strategy’s Bitcoin purchase remains a simple signal

This September 20, Michael Saylor published the graph which traces the acquisitions of bitcoins made by Strategy. His message was limited to four words: “ a little more orange“, either “a little more orange” . Each orange dot on the document constitutes a purchase made by the company.

Such a publication is similar to previous clues released by Saylor before an official communication. However, it does not prove that a transaction has already taken place. Only a new form filed with the SEC will confirm the number of bitcoins purchased, the amount committed and the average price paid.

At this level, the available statistics make it possible to currently summarize the company’s position:

• Strategy holds 845,050 BTC;
• These bitcoins cost $63.73 billion;
• Their average acquisition price reaches $75,412;
• The group made no purchases between September 8 and 13;
• Its next regulatory filing will confirm a possible transaction.

At the price displayed on the chart published by Saylor, the reserve was worth nearly $67.90 billion. However, this estimate evolves in real time with the price of the crypto.

Strategy comes out of two weeks without any new acquisitions

The last confirmed acquisition dates back to the period between August 24 and 30. Thus, the firm then purchased 4,603 BTC for nearly $369.7 million. The average price of this transaction was $80,318 per bitcoin.

This acquisition signaled the return of Strategy after several weeks of hiatus. Michael Saylor had already prepared the ground with a message, before the company communicated the details of the operation.

Then, the firm kept an unchanged reserve during two consecutive publication periods. In his September 14 report submitted to the Securities Exchange Commissionshe certifies having neither acquired nor transferred bitcoins between September 8 and 13;

The current reserve of 845,050 BTC held now constitutes just over 4% of the maximum supply of 21 million bitcoins. This concentration makes Strategy the first listed company to hold BTC, however it increases the sensitivity of its balance sheet to market fluctuations.

Strategy’s Bitcoin purchase can raise 1.3 billion

As of September 13, Strategy had $1.30 billion in flexible cash. The company can therefore use this liquidity to acquire bitcoin, consolidate its dollar reserves or invest in various financial securities.

Thus, the group separately maintains a reserve of 5.10 billion dollars. This is mainly used to cover dividends from its preferred shares and the interest owed on its debt. It therefore does not immediately represent an envelope dedicated to future purchases of BTC.

During the week ended September 13, Strategy elected to spend $139.3 million to repurchase 1,420,467 shares of STRC preferred stock. This preference reveals that the accumulation of bitcoins is no longer the only immediate objective of one’s capital management.

The issuance of common stock, preferred securities or debt could also finance a new transaction. These tools provide Strategy with significant acquisition capabilities, however they expose shareholders to dilution, dividends and financing costs.

An official document must still confirm the purchase

Michael Saylor’s Sunday announcements are currently an indicator followed by the market. Generally, the firm communicates the details of its transactions at the beginning of the following week, when the operations have already been executed.

The next report will show whether the expression“a little more orange”truly corresponds to an increase in reserves. It will also indicate the acquisition period, the number of BTC obtained and the source of financing.

After the recent repurchase of STRC shares, a resumption of purchases could indicate that Strategy once again deems conditions favorable for accumulation. In the absence of an SEC filing, however, Saylor’s message remains an invitation to speculation, and not an official financial announcement.