Michael Saylor’s Bitcoin Strategy

Michael Saylor’s Bitcoin-buying behemoth has yet to buy the latest dip, which may indicate a shift in their acquisition strategy amid market headwinds.

Based in Tysons, Virginia, Strategy transitioned from a software focus to becoming a Bitcoin treasury. They purchased Bitcoin 18 times last year, according to Saylor Tracker, with nearly half of those announcements occurring after U.S. President Donald Trump’s reelection in November, when crypto prices surged.

So far this year, Strategy has reported six Bitcoin purchases, but their holdings have remained unchanged at 499,096 Bitcoin since February 24. At that time, they announced an average purchase price of $97,500 per Bitcoin.

This pause in buying coincides with Trump’s fluctuating tariffs, which have impacted stocks and crypto, leading to outflows from spot Bitcoin ETFs. Recently, spot Bitcoin ETFs have seen a loss of $649 million since Monday, as Bitcoin drifted below $80,000.

Spot Bitcoin ETFs made their historic U.S. debut last year. Along with Strategy’s significant demand for Bitcoin, these factors helped push Bitcoin prices to new heights.

Prediction markets on MYRIAD suggest there is a 60% chance that Strategy’s holdings will remain unchanged for a third consecutive week, with no new purchases expected on Monday.

Strategy’s stock price has fallen by 18% over the past month, currently sitting at $265. Despite the recent decline, shares are up 50% from a year ago.

Strategy’s Approach

To finance Bitcoin purchases, Strategy raises capital by selling shares or bonds. Their ability to acquire capital is affected by stock price volatility and Bitcoin momentum, according to analysts Ed Engel and Joe Flynn from Compass Point Research & Trading. They noted that MSTR’s cost of capital increases during market corrections, making it harder to buy BTC at lower prices.

In recent years, Strategy has used convertible senior notes to buy Bitcoin. These notes allow investors to convert debt into shares. They sold $3 billion worth of these notes at a 55% conversion premium in November, and later offered $2 billion worth at a 35% premium in February, indicating a reduction in attractiveness.

Additionally, Strategy launched “STRK” in January—a perpetual strike preferred stock that pays dividends unless redeemed. They raised $563 million through this offering and announced plans to offer another $21 billion in STRK over an extended period.

Mark Palmer, a senior equity research analyst at Benchmark, stated that Strategy’s recent pause likely relates to arranging the new offering and reassured that their interest in Bitcoin purchases remains strong.

Saylor, the co-founder and executive of Strategy, referred to the STRK product in a recent post on X (formerly Twitter), emphasizing their commitment to the Bitcoin acquisition strategy.

Strategy did not respond immediately to a comment request from Decrypt.

Edited by James Rubin