Historically, Saylor posting the chart usually precedes the announcement of another BTC purchase by the firm. This has led many to speculate that the company could announce new BTC purchases by May 12.
This will not be surprising given that Strategy has been on a Bitcoin acquisition spree for months. Its latest purchase was publicly disclosed on May 5 with the announcement of a $180 million purchase.
With Bitcoin near an all-time high presently, Strategy buying BTC now could be the catalyst that will send it to a new all-time high, and many are excited about the prospect. BTC is only 4% away from surpassing $109,000, the peak price it set in January 2025.
Some noted that the company buying BTC, regardless of whether it’s trading high or low, is the true definition of conviction. If Strategy bought now, it would not be its first BTC of over $100,000. The company made several BTC acquisitions in January when the flagship asset was trading at an all-time high.
Meanwhile, Strategy currently holds 555,450 BTC valued at $58.21 billion with a cost basis of around $38 billion. This means it is sitting on unrealized profits of $20.12 billion, a 52.84% return on investment.
Saylor bullishness on BTC explains why MSTR buys at all price points
Interestingly, Strategy’s purchase of BTC near its all-time high impacts its cost basis and effectively reduces its ROI, especially when the asset drops below its peak price.
However, the company’s continued acquisition is premised on the belief that Bitcoin will be substantially worth more in the future. This has fueled Strategy purchases and its recent decision to adjust its purchase plan to $84 billion.
With the company simply holding BTC and having no plan of selling, it is playing a long-term game that has attracted the praise of analysts who believe it’s a strategic and ambitious move.
So far, the Strategy playbook has proven successful for the company. The MSTR stock is up by more than 40% this year alone, adding $126.41 to its price to reach $416. This performance means MSTR is doing better than Bitcoin, which is only up 10.43% YTD.
With the company’s performance, there are speculations that it could soon be eligible for the S&P 500. Analyst and MSTR investor Jeff Walton predicted that if the company has a big Q2 earnings, it will technically qualify for the S&P 500.
Broader conviction is what BTC needs to hit $150k
Meanwhile, an ideal example of Saylor’s conviction on Bitcoin is his recent statement about how market rotation has prevented BTC from hitting $150,000. According to the Strategy founder, holders with no long-term conviction who have been selling are why BTC remains stuck.
He pointed at institutional sales by bankruptcy trustees and governments, noting many of these entities sold when BTC price rallied as they saw it as a good exit point.
However, he acknowledged that this is changing with more long-term investors such as exchange-traded funds (ETFs) and companies with a Bitcoin treasury now fueling the demand for the flagship asset.
Saylor believes it would be small companies rather than big ones that will fuel BTC’s growth when they adopt the asset. He noted that there are 12,000 companies in the US, with many existing in obscurity. BTC could be what makes the market notice them.
That is already true, with several small-cap companies adopting Bitcoin as a treasury asset. Interestingly, Coinbase CEO Brian Armstrong recently said that the exchange also considered adopting a Strategy core focus on Bitcoin investment. However, it decided against it because it would have affected the company’s cash position, and the risk was too much for the exchange.
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