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Michael Saylor Signals Strategy Is ‘Back’ to Bitcoin Buying
- Michael Saylor has hinted Strategy may resume Bitcoin purchases after weeks without buying.
- Strategy has not bought BTC since June and recently sold some of its holdings.
- The company raised US$2.01 billion through MSTR share sales but kept the funds in reserves and cash.
- Bitcoin remains below US$80K as analysts watch for signs the bear market may be ending.
After weeks of not buying any more Bitcoin for its reserves, a post by the founder and chairman of Strategy (formerly MicroStrategy), Michael Saylor, indicates that things might be about to change. On what used to be Twitter and is now called X, Saylor simply posted the following to his 5 million followers:
Saylor’s weekend posts have often in the past been followed by a large Bitcoin purchase announcement on Monday. Strategy hasn’t bought any BTC since June and has actually sold some coins over the past few weeks.
No Change in Bitcoin-Buying Strategy
Meanwhile, the messaging has remained firm that Strategy hasn’t changed its direction. The recent announcement could be a signal that it’s time to start buying again.
Read also: Bitcoin Eyes $83K Confirmation as Bernstein Bets on $1M by 2033
Just last week, the company raised US$2.01 billion (AU$2.8 billion) through sales of its MSTR common stock for the week to 23 August, but did not use any of the proceeds to buy Bitcoin.
The company sold more than 18.2 million shares, while its four preferred stock at-the-market programmes recorded no sales. Instead, Strategy used US$136.4 million (AU$190.28 million) to repurchase STRC shares, allocated US$300 million (AU$418.52 million) to its USD Reserve and placed the remaining funds into a newly created USD Cash pool.
The company said no Bitcoin was bought or sold during the week, leaving its holdings at 840,447 BTC. The new cash pool can be used for future Bitcoin purchases, dividends, debt obligations and share buybacks, giving Strategy additional flexibility as it builds liquidity.
While Saylor’s post seems encouraging, the market hasn’t exactly responded with euphoria. Bitcoin was trading at US$77,661 (AU$108,341) at the time of writing, up just 0.49% over the week. Analysts are divided on whether the bear market is over and are watching for BTC to break through the US$80K (AU$111.6K) barrier before any further upside.
Read more: StarkWare Mines Bitcoin’s First Quantum-Safe Transaction on Mainnet
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Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
