Strategy Plans Third Bitcoin Purchase As BTC Price Stalls
Business intelligence firm Strategy, led by Michael Saylor, is set to make its third bitcoin purchase this August despite stagnant BTC price. According to SaylorTracker, Strategy added 430 BTC on August 18 for $51.4 million, bringing total holdings to 629,376 BTC valued at over $72 billion.
So far in August, Strategy acquired 585 BTC. This pace marks a shift from its typical large-scale acquisitions. The company’s bitcoin purchase strategy has generated a 56% unrealized gain, worth $25.8 billion at current valuations.
Strategy uses over-the-counter (OTC) channels for bitcoin purchases. Corporate treasurer Shirish Jajodia explained that OTC deals avoid price spikes and protect Bitcoin liquidity. With Bitcoin’s daily trading volume exceeding $50 billion, multi-day OTC purchases have minimal market impact.
While Strategy’s bitcoin reserves climb in value, its stock has faced pressure. Shares dipped to $325, the lowest in four months, before rebounding to $358. Despite equity volatility, Strategy remains committed to consistent bitcoin accumulation, reinforcing bitcoin’s role as a treasury asset for institutions.
This third bitcoin purchase underscores Strategy’s leadership as the world’s largest corporate bitcoin holder. The firm’s ongoing accumulation could influence institutional adoption and market sentiment.
Bullish
Strategy’s third bitcoin purchase amid price stagnation demonstrates sustained institutional demand. Historically, large-scale corporate buys have supported BTC price and reinforced positive market sentiment. Strategy’s OTC acquisitions minimize market disruption, underscoring its intention to hold long term. Increased demand against stagnant supply may drive price appreciation. In the short term, small-scale purchases might have limited effect on volatility; long term, continued accumulation by the largest corporate holder supports a bullish outlook and could attract more institutional investors.