Is Michael Saylor preparing a new bitcoin acquisition for Strategy? The manager recently shared a graph suggesting an upcoming increase in the company’s reserves. This publication comes after several optimistic statements on the market and a week without purchasing cryptocurrencies. As Strategy continues its long-term holding policy, its latest financial results also reveal important choices in the management of its capital and preferred shares.
In brief
- Michael Saylor hints at further purchases after speaking of an upcoming bull market.
- Strategy holds 848,517 BTC, valued at approximately $66 billion.
- The company spent $204.9 million to repurchase 2.06 million shares of STRC preferred stock.
- Reserves now represent 4.04% of the maximum supply of 21 million BTC.
Michael Saylor hints at new bitcoin purchases
On November 1, Michael Saylor published a new message on X which suggests a possible additional acquisition. Strategy’s founder and executive chairman shared a chart charting the company’s successive purchases. He accompanied it with an evocative sentence: “We found room for even more orange. » This reference to the color orange takes up a visual code regularly associated with its accumulation strategy.
The chart shows a total of 848,517 BTC, worth approximately $66 billion. It distinguishes the different purchase operations through orange circles placed on the historical evolution of the price. Another line shows the average price at which Strategy has built its reserve. According to the data shown, the company has made 119 acquisitions, with an average cost of $75,446 per unit.
However, this publication does not confirm any new transactions. The balance presented corresponds to the reserves declared by Strategy as of October 25. So this is a hint at Saylor’s possible intentions, rather than an official announcement. A precedent nevertheless reinforces this interpretation: on October 11, the leader had already published a similar chart, before announcing a purchase of 250 BTC for around $21.5 million the next day.
Strategy supports its ambitions with a bullish vision of bitcoin
This new allusion comes a few days after Michael Saylor’s statements on the market outlook. During the presentation of quarterly results on October 29, he estimated that bitcoin was entering a new bullish phase. To explain this development, he notably mentioned its growing adoption by banks and the return of institutional demand. He also highlighted the growing place of this asset among the main digital values.
Saylor also indicated that the price was then trading 21% above its 200-week moving average. This technical indicator accompanies its analysis of a market which could regain positive dynamics. His declarations are thus in line with the policy of accumulation pursued by Strategy for several years. However, they do not make it possible to determine the date or the amount of a possible next purchase.
The financial results published the same day present particularly contrasting figures. Strategy reported third-quarter operating income of $20.91 billion. Capital gains on its digital assets represent the entirety of this amount. Diluted earnings rose to $44.75 per share, while revenue fell 3% year-over-year to $125.4 million.
According to the quarterly report, bitcoin reserves have increased by 26% since January. As of October 25, Strategy had spent $14.33 billion on its acquisitions for the year. However, its BTC Yield indicator showed a negative result of 3.7%. This measure compares the change in BTC holdings to the number of assumed diluted shares. It shows that the growth of reserves did not follow that of the number of shares over the period considered.
STRC share buybacks replaced BTC purchases
The last document transmitted to the Securities and Exchange Commission on October 26, sheds light on Strategy’s recent decisions. Between October 19 and 25, the company neither bought nor sold bitcoin. The total cost of its reserves then reached approximately $64.02 billion, including fees and expenses. During this same week, it made no sales of shares as part of its market offering program.
In contrast, Strategy spent $204.9 million to repurchase its STRC preferred stock. This operation concerned precisely 2,068,459 Stretch securities with variable rates. The company financed these repurchases with its available cash, initially intended for acquisitions, capital management and corporate needs. This choice marks a break in the accumulation, without calling into question the intentions displayed by its leader.
As of October 25, this free cash flow stood at $242.4 million. Strategy also had a separate reserve of $4.83 billion. This sum must notably cover dividends from preferred shares and interest linked to the debt. These amounts illustrate the different financial commitments that the company must manage alongside its investment policy.
A reserve which represents more than 4% of the maximum offer
With 848,517 units in its portfolio, Strategy holds approximately 4.04% of the maximum supply of 21 million bitcoins. This proportion gives a particular dimension to each new acquisition. It also underlines the weight of this reserve in the financial management of the company. However, its valuation remains directly linked to market fluctuations and the price of the asset.
At the time of writing, the price of bitcoin was trading at $78,216. This level remains higher than the average acquisition cost displayed by Strategy, established at $75,446. However, this gap can change quickly depending on market movements. The overall value of reserves therefore always depends on price movements.
Michael Saylor’s next publication could provide further details on the company’s intentions. If Strategy resumes its acquisitions, it will also have to take into account its cash flow needs and financial commitments. For the moment, no new purchases appear in the data communicated. The company, however, maintains a significant reserve and its manager continues to display his confidence in the market outlook.
In the short term, attention will therefore focus on Strategy’s upcoming announcements. A new purchase would confirm the continuation of its accumulation policy, while a new pause would underline the importance of its financial decisions. The evolution of the price and the available resources will remain decisive for the continuation of this strategy.
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