Michael Saylor has indicated that another Bitcoin buy will be made with Strategy holding over 3% of the entire supply. This comes as MSTR shares attract fresh interest. Also, there is tightening liquidity and cautious positioning by traders near significant BTC price levels.
Strategy’s Bitcoin Holdings Surpasses 3%
Saylor posted “Bigger Orange” on X with a chart of the Bitcoin purchase of Strategy since 2020. This chart demonstrates that Strategy possesses approximately 687,410 Bitcoin. That is actually approximately 3% of the total amount of Bitcoin (21 million BTC).
Strategy has made over 94 Bitcoin acquisitions in a period of about 4 years. It now has an average buying cost of around $75,000/Bitcoin.
As Bitcoin price is close to $95,000, the unrealized gains of the company have grown massively. Strategy also purchased 13,627 Bitcoin last week for about $1.25 billion. The acquisition was financed with a combination of debt issues, equity issues and cash sources.
Saylor has already published these kinds of posts before with confirmed purchases happening afterwards. These posts are usually regarded by traders to be early signs of new Bitcoin buys.
Will Fresh Bitcoin Buy Boost MSTR Stock Price
The Bitcoin exposure level of Strategy has not yet reflected in the performance of its stock. According to the data of TradingView, the shares of MSTR increased by approximately 4% in the past week.
The share was trading at $174 after extending short-term gains. On the year-to-date basis, MSTR has risen by over 12%. Other than the BTC purchase by Strategy, as reported by Coingape, the MSTR stock price has recovered in last few weeks.
This follows the official decision by MSCI to abandon any plans to make changes to the index rules. The ruling eliminates any significant uncertainty about MSTR. The stock has increased by over 180% over the last five years. This implies that MSTR is being progressively used by investors as an over-weighted proxy to Bitcoin price fluctuations. This is more likely to rise whenever Strategy provides new accumulation.
Bitcoin Liquidity Indicates Short-Term Caution
Despite continued BTC accumulations by corporations, the coin’s short-term market mood is mixed. Further context is provided by the liquidity data from analyst Ted Pillows.
Pillows also added that a large number of traders are remaining cautious. Regardless of their positioning, institutional Bitcoin futures activity is surging with larger traders taking more positions.
He also observed that there are heavy liquidity pockets from $96,000 to $98,000. These types of areas typically function as Bitcoin price magnets in the short term. Also, they are able to decelerate the price momentum or initiate volatility when there are large capital inflows.