Michael Saylor displays his confidence in bitcoin and mentions new purchases for Strategy

Is Michael Saylor preparing a new bitcoin acquisition for Strategy? The executive recently shared a chart hinting at a forthcoming increase in the company’s reserves. This publication follows several optimistic statements about the market and a week without cryptocurrency purchases. While Strategy continues its long-term holding policy, its latest financial results also reveal significant choices in managing its capital and preferred shares.

Michael Saylor hints at new bitcoin purchases

On November 1st, Michael Saylor posted a new message on X suggesting a possible additional acquisition. The founder and executive chairman of Strategy shared a chart tracing the company’s successive purchases. He accompanied it with an evocative sentence: “We have found room for even more orange.” This reference to the color orange recalls a visual code regularly associated with his accumulation strategy.

The chart shows a total of 848,517 BTC, representing about 66 billion dollars. It distinguishes the various purchase operations through orange circles placed on the historical price evolution. Another line indicates the average price at which Strategy has built its reserve. According to the displayed data, the company made 119 acquisitions, with an average cost of 75,446 dollars per unit.

However, this publication does not confirm any new transaction. The presented balance corresponds to the reserves declared by Strategy as of October 25. It is therefore an indication of Saylor’s possible intentions, rather than an official announcement. A precedent nonetheless reinforces this interpretation: on October 11, the executive had already posted a similar chart before announcing a purchase of 250 BTC for about 21.5 million dollars the next day.

Strategy supports its ambitions with a bullish bitcoin outlook

This new hint comes a few days after Michael Saylor’s statements about market prospects. During the presentation of the quarterly results on October 29, he estimated that bitcoin was entering a new bullish phase. To explain this evolution, he notably mentioned its growing adoption by banks and the return of institutional demand. He also underlined the increasing place of this asset among the main digital values.

Saylor also indicated that the price was then 21% above its 200-week moving average. This technical indicator supports his analysis of a market that could regain positive momentum. His statements thus align with the accumulation policy pursued by Strategy for several years. However, they do not allow determining the date or amount of any potential next purchase.

The financial results published on the same day show particularly contrasting figures. Strategy recorded an operating income of 20.91 billion dollars in the third quarter. Capital gains on its digital assets represent the entirety of this amount. Diluted earnings reached 44.75 dollars per share, while revenue declined by 3% year-on-year to 125.4 million dollars.

According to the quarterly report, bitcoin reserves increased by 26% since January. As of October 25, Strategy had dedicated 14.33 billion dollars to its acquisitions for the year. Yet, its BTC yield indicator showed a negative result of 3.7%. This measure compares the evolution of BTC holdings to the supposed diluted share count. It shows that the growth of reserves was slower than the increase in the number of shares over the period considered.

STRC share buybacks have replaced BTC purchases

The latest document filed with the Securities and Exchange Commission on October 26 clarifies Strategy’s recent decisions. Between October 19 and 25, the company neither bought nor sold bitcoin. The total cost of its reserves then reached about 64.02 billion dollars, including fees and expenses. During the same week, it did not sell any shares under its market offer program.

In contrast, Strategy allocated 204.9 million dollars to repurchasing its STRC preferred shares. This operation concerned precisely 2,068,459 variable-rate Stretch securities. The company financed these buybacks with its available cash, originally intended for acquisitions, capital management, and business needs. This choice marks a pause in accumulation without calling into question the intentions expressed by its executive.

As of October 25, this available cash amounted to 242.4 million dollars. Strategy also had a separate reserve of 4.83 billion dollars. This sum must notably cover preferred share dividends and debt-related interest. These amounts illustrate the different financial commitments that the company must manage alongside its investment policy.

A reserve representing more than 4% of the maximum supply

With 848,517 units in its portfolio, Strategy holds about 4.04% of the maximum supply of 21 million bitcoins. This proportion gives a particular dimension to each new acquisition. It also highlights the weight of this reserve in the company’s financial management. However, market fluctuations and the asset price continue to directly affect its valuation.

At the time of writing, the bitcoin price was trading at 78,216 dollars. This level remains above the average acquisition cost displayed by Strategy, set at 75,446 dollars. Nevertheless, this gap can change quickly according to market movements. The overall value of the reserves therefore always depends on price developments.

Michael Saylor’s next publication could provide details about the company’s intentions. If Strategy resumes its acquisitions, it will also have to consider its cash needs and financial commitments. For now, no new purchase appears in the communicated data. The company still maintains a significant reserve, and its executive continues to display confidence in market prospects.

In the short term, attention will focus on upcoming announcements from Strategy. A new purchase would confirm the continuation of its accumulation policy, while a new pause would underline the importance of its financial arbitrations. Price movements and available resources will remain decisive for the future of this strategy.