MicroStrategy Structures Bitcoin Buys to Avoid Price Impact
MicroStrategy’s corporate treasury head Shirish Jajodia says the firm structures its Bitcoin purchases to avoid moving market prices. Since starting its BTC accumulation in 2020, MicroStrategy holds 629,376 bitcoins (approx. $70.85 billion). The company executes buys around the clock via OTC trading desks and adjusts volumes relative to market liquidity to prevent price spikes. Data shows mixed market reactions: after a $5.4 billion buy of ~55,000 BTC in November, prices later hit all-time highs; a July purchase of 21,021 BTC, however, saw a 4% price drop. Jajodia emphasized continuous buying activity and opportunistic acceleration during dips. Founder Michael Saylor also reiterates his strategy to buy Bitcoin with capital he can’t afford to lose, regardless of price. Traders watch MicroStrategy’s BTC acquisitions for signals, but the firm’s disciplined approach aims for minimal market disruption and underscores its long-term accumulation strategy.
Neutral
The announcement confirms MicroStrategy’s ongoing institutional demand for Bitcoin without manipulating market prices. By using OTC desks and pacing buys to market liquidity, the firm avoids short-term price spikes or crashes. Similar past purchases yielded mixed price moves, suggesting no guaranteed immediate rally. However, the continuous accumulation supports a long-term bullish narrative. Traders can expect minimal immediate volatility due to these disciplined buys, but sustained demand underpins future price stability.