Strategy announced a $51.4 million Bitcoin purchase, representing a big increase from last week. Several firms are buying much more, but it’s still a leader in the global trend.
Additionally, Michael Saylor revealed that the firm might begin selling stock to fund debt obligations, not purchase Bitcoin. This pivot has raised some concerns in the community, which fears a potential contraction.
Strategy’s Newest Bitcoin Buy
Strategy pioneered the global Bitcoin treasury movement, and it’s led corporate BTC acquisition on many occasions. However, since making a $2.4 billion purchase at the beginning of the month, it has slowed down, buying $18 million last week. Today, Michael Saylor announced another buy:
On one hand, this seems a little strange. Bitcoin recently hit an all-time high, and several Japanese firms outpaced Strategy’s BTC consumption this week, often by huge margins.
On the other, though, these companies might be outliers. Blockchain data shows that corporate BTC treasury holdings fell by 2,000 bitcoins since early August. Strategy is continuing to rebuild its purchasing momentum while most other Bitcoin buyers are pulling back.
A New Plan for Stock Sales?
To help explain its maneuvers, Saylor also circulated a new guidance detailing the firm’s capital markets strategy. Depending on a few factors, the firm might sell stock for reasons other than Bitcoin purchases:
However, multiple commentators pointed out that this directly contradicts guidelines from the most recent Earnings Presentation. Strategy already calibrates its Bitcoin purchases based on mNAV, a function of BTC prices and MSTR stock. However, its decision to sell stock for reasons other than token acquisition is new.
Essentially, the community can take this in two ways. The diminishing Bitcoin supply could adversely impact Strategy’s acquisition methods, after all. By beginning to issue stock without corresponding BTC purchases, it could be preparing for a long-term pivot.
However, this about-face could also signify a potential weakness, considering Bitcoin’s recent price drops. The firm may need these stock sales to continue financing its debt until BTC recovers a little.
For now, it’s difficult to be sure.
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