Key Takeaways
- Saylor has posted a BTC tracker on X, hinting that a new Bitcoin buy may be imminent. The buy could be announced later this week.
- Michael Saylor’s Strategy added 80,715 BTC in Q1, when Bitcoin’s price dropped.
- At the moment, Strategy holds over 530,000 BTC, which is over 2.5% of the total supply of the digital asset.
Strategy (Formerly MicroStrategy) co-founder Michael Saylor has hinted the company could soon announce an additional Bitcoin purchase, weeks after the company paused Bitcoin purchases when the price stumbled in Q1.
According to a post on his social media site X, the billionaire stated there were “no tariffs on orange dots,” with orange dots on graphs representing the company’s Bitcoin purchase. Analysts believe the comment implied Strategy’s Bitcoin purchase plan would not be affected by Donald Trump’s recent reciprocal tariff announcement and the ensuing U.S.-China trade war.
Strategy Expected a Net Loss in Q1 2025
The consequences of Trump’s so-called “Liberation Day” tariff announcement jolted global financial markets, creating panic among investors, compressed the total crypto market by over 10% within 2 hours, and shrinking the industry’s market cap to $2.5 trillion. According to the GMCI 30, which tracks the top 30 digital assets by valuation, onchain data shows it fell almost 12% within the same period. Like all other stocks on Wall Street, MSTR buckled under similar pressure and lost significant value. The tariff announcement took down Strategy’s stock by more than 8% in pre-market trading as an aftermath of the tariff announcement.
The additional Bitcoin purchase comes shortly after it was revealed that the company expected a net loss in Q1 2025 due to unrealized losses on its massive BTC holdings. The Strategy made a huge $2 billion Bitcoin purchase on March 31, adding 80,785 BTC to the company’s stash, bringing its total holdings to nearly 530,000.
Strategy Holds 2.515% of the BTC’s total supply
The company raised $7.69 billion during the first quarter, nearly 50% coming from common stock sales. Most, if not all, of those funds were used to buy Bitcoin. However, the company did not buy more coins over the period from March 31 and April 6. The company halted its Bitcoin buying spree in the week ending April 6 and has a stash that is currently worth roughly $44.59 billion and was acquired for $35.63 billion. According to data from Bitcointreasuries, Michael Saylor’s company’s 530,000 Bitcoins bought at an average price of $67,458 is equivalent to 2.515% of the cryptocurrency’s total supply.
MicroStrategy rebranded to Strategy in 2024 when it became an investment company making tremendous gains following its massive Bitcoin purchases. However, the price of Bitcoin has recently underperformed amid macroeconomic turbulence as a result of reciprocal tariffs recently announced by US President Donald Trump. Despite the low moments, Michael Saylor seems unfazed by the persistent turmoil. Saylor recently revealed in his social media profile that Bitcoin is powered by chaos when he compared Strategy’s impressive one-year returns to those of Tesla, Nvidia, and Bitcoin.
Conclusion
The anticipated announcement by Michael Saylor regarding an additional Bitcoin purchase by Strategy happens when BTC is back in the spotlight following a 90-day pause on key tech tariffs announced a few days ago. The tariff pause, which exempted products like smartphones, computer chips, and other critical components from previously announced 125% reciprocal tariffs on Chinese imports, reignited risk appetite across the crypto market and sparked notable interest in Bitcoin whale activity, indicating that high-stake investors are moving back in.
Frequently Asked Questions (FAQs)
What is Michael Saylor’s Bitcoin strategy?
Michael Saylor proposes a four-part framework for digital assets, categorized as digital tokens, securities, currencies, and commodities like Bitcoin. He aims to ensure the US dollar remains dominant in global trade and integrate cryptocurrencies into mainstream finance.
How does Strategy use Bitcoin to make money?
Saylor has created a business out of securitizing Bitcoin by innovatively combining well-known financial tools. He has discovered a treasury management model that takes advantage of flaws in the fiat system and combines them with Bitcoin’s predictability, leading to significant profit potential for MSTR.
Why does MicroStrategy have so much Bitcoin?
Since many large investment firms and brokerages cannot trade spot bitcoin ETFs or commodities like bitcoin, they trade in a public company’s stock. As interest in Strategy increased, its stock price appreciated, which allowed it to accumulate more bitcoin.
