Strategy Signals Another Bitcoin Buy: “Think Even Bigger” Post Sends Market Into Overdrive

Quick overview

Michael Saylor’s weekend message, $18 billion in trading volume, and a treasury showing 780,897 BTC have investors bracing for Strategy’s next major accumulation move.

Strategy Inc. (NASDAQ: MSTR) is once again the subject of speculation in the cryptocurrency market. This is because Executive Chairman Michael Saylor dropped one of his now-famous treasury signals over the weekend, and the market quickly figured out what it meant.

Saylor uploaded a company dashboard that showed Strategy has 780,897 BTC, which it bought for about $59.02 billion, or an average price of $75,577 per bitcoin. The post only said “Think Even Bigger.” The message was short. Analysts and dealers said the effects were anything but.

Strategy is Fresh Off a $1 Billion BTC Buy

The timeliness of the signal makes it more important. Just a few days earlier, on April 13, Strategy told the SEC that it had bought 13,927 BTC between April 6 and April 12 for about $1 billion, which it paid for by selling its STRC perpetual preferred shares. That purchase boosted the company’s total to 780,897 BTC, which means that the keenly awaited 800,000 BTC milestone is now very close.

Bitcoin BTC/USD is selling close to $75,000, which is almost precisely the average cost basis for Strategy. This has led to more speculation about whether the company is getting ready to add rapidly or stay the same.

$18 Billion in Volume Fuels Speculation on MSTR Stock

Jeff Walton, Chief Risk Officer at Strive (ASST), said that Strategy had almost $18 billion in trading activity last week alone, which is enough to support a lot of equity issuance at the market. Based on those numbers, market estimates say that Strategy might raise between $450 million and $1.8 billion in new funding, which could mean between 5,750 and 23,000 more Bitcoin.

Some traders think that the inflows could reach $2 to $3 billion a week if they keep going at this rate. The Bitcoin Historian, a well-known Bitcoin journalist, said that this “the largest ever” accumulation phase for the corporation might happen because of how big it could go.

Is Strategy (MSTR) a New Kind of Market Force?

More and more people are seeing Strategy not just as a company that holds Bitcoin, but as a structural force in the market itself. Adam Back, the CEO of Blockstream and the creator of Hashcash, said at Paris Blockchain Week that Strategy’s repeated purchases, which can be as many as 10,000 BTC at a time, provide constant pressure on the buy side that can outstrip the daily amount of new Bitcoin produced.

Strategy has developed this ability by using a combination of at-the-market equity sales and more complicated techniques like its STRC perpetual preferred shares, which go beyond standard corporate treasury tools. The company’s dashboard also revealed that it had about $2.25 billion in USD reserves and 10% net leverage. This means that it still has a lot of room to push its position.

A Pure Bitcoin Proxy, With Stakes to Match

The company’s changing identity from a software vendor to a “leveraged Bitcoin operating company” is attracting both bulls and doubters. Simply Wall St’s community analysts say the fair value estimates for the stock range from $371 to $705 per share. This is much more than the stock’s current price of $166.52, which went up 11.80% on Friday and then down 0.16% in after-hours trading.

The difference in values highlights the main conflict in the Strategy story: the same aggressive accumulation technique that produces huge upside exposure also increases risk if Bitcoin sentiment changes or funding becomes harder to get.
For now, retail sentiment on Stocktwits is still in the “extremely bullish” zone, and the market is keeping a close eye on it. There haven’t been any fresh purchases since last week’s SEC report, but investors have learned that a filing often comes after Saylor posts.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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