Bitcoin : After a $28.7 Million Purchase, Saylor Sends a New Signal

The company Strategy may soon strengthen its bitcoin reserves, after a new message from Michael Saylor published on October 11. The leader shared an orange chart that renews speculation about an upcoming acquisition. This publication comes a few days after a purchase of 334 BTC, valued at $28.7 million. However, the company’s cash reserves must also cover its financial obligations, including dividends and debt interest.

Strategy: Michael Saylor Hints at a New Bitcoin Purchase

On October 11, Michael Saylor published on X a new message suggesting a possible bitcoin acquisition by Strategy. The company’s executive chairman accompanied his post with a chart showing the successive purchases made by the company. The orange circles represent the different operations made over time. “There is always room for more orange,” he wrote, without directly announcing a new transaction.

The chart presents a portfolio of 848,000 BTC, with a value reaching $70.48 billion. It also indicates an average acquisition cost of about $75,441 per unit. According to the transaction history of Strategy, the company has completed 117 purchase operations. This data allows tracking the evolution of its reserves and comparing acquisitions against market prices.

However, the displayed value depends directly on the market price at the considered time. A price fluctuation can thus modify the total portfolio value without causing movement in the reserves. The 848,000 BTC balance corresponds to declared holdings as of October 4. A new official communication will help verify if Saylor’s last message indeed announces an additional purchase.

Precedents Strengthen Speculation Around Strategy’s Bitcoin Purchases

Michael Saylor’s posts themed around the color orange have previously preceded several purchase announcements. On October 4, the leader had written “More orange than ever” while sharing a chart dedicated to his company’s reserves. At that time, it displayed 847,666 BTC, the balance communicated before the next update. The message thus drew attention to a possible new treasury operation.

The next day, Strategy confirmed the purchase of 334 BTC totaling $28.7 million, including fees and expenses. The company had made this acquisition between October 1 and 4. Its average price was about $85,839 per bitcoin, exceeding the portfolio’s historical average cost. This announcement confirmed the completion of a new operation after the message was posted the previous Sunday.

A comparable precedent appeared at the end of September. On September 27, Saylor posted another message mentioning adding more orange. Strategy had previously announced the purchase of 950 BTC on September 21, then declared an additional acquisition of 1,665 BTC for the week ending September 27. These episodes explain why observers follow the leader’s posts. However, a suggestive message does not constitute official purchase confirmation.

A Purchase Financed by Shares and Available Cash

The last confirmed operation shows how Strategy finances its bitcoin purchases. According to its financial report published on October 5, the company mobilized two funding sources to acquire the 334 BTC. The sale of new ordinary MSTR shares generated $15.7 million. The company supplemented this amount with $13 million taken from its dollar cash reserves.

This allocation brings the total declared cost of historical acquisitions to about $63.97 billion. It also illustrates the role of equity financing in the company’s treasury strategy. At the same time, available cash supports operations without relying solely on new issuances. Future announcements will need to clarify whether Strategy maintains this approach for potential additional purchases.

Michael Saylor has long advocated the use of bitcoin to preserve economic value in digital form. In August, he presented this characteristic as a major advancement, enabling individuals, companies, machines, and governments to control this value. This vision remains at the core of Strategy’s accumulation policy. Nonetheless, the company must also preserve resources necessary for its other financial commitments.

Dollar Reserves Remain Essential to Strategy’s Obligations

Beyond its cryptocurrency acquisitions, Strategy must finance several commitments to its investors and creditors. Its dollar reserves are notably used to pay dividends related to preferred shares and interest on its outstanding debt. These expenses require separate management of funds dedicated to BTC purchases. The company must therefore arbitrate between accumulating new assets and maintaining sufficient liquidity.

As of October 4, Strategy had a reserve of $4.88 billion allocated to cover these payments. It also held an additional $833.4 million in cash for general needs. This second envelope can notably support cryptocurrency acquisitions and capital management. These amounts demonstrate that the company retains resources allocated to multiple objectives beyond its purchase policy alone.

The October 11 publication does not, however, allow determining whether a new transaction has already been made or is only considered. The next Strategy report will need to provide concrete elements on the evolution of its reserves. If the company confirms a new purchase, investors will be able to assess its amount, financing, and effect on the portfolio’s average cost. Until then, bitcoin remains central to Saylor’s strategy, while balancing accumulation and financial obligations remains an important factor for the company’s upcoming decisions.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.