Strategy co-founder Michael Saylor signaled an imminent bitcoin purchase on Sunday, posting “think big” alongside the company’s BTC acquisition tracker that has preceded every major purchase since 2020.
The company has made 105 bitcoin purchases since it began accumulating in August 2020. The most recent, on April 6, added 4,871 BTC for $329.8 million. Total holdings amount to 766,970 BTC acquired at a combined cost of $75,644, approximately $5,000 above the current market price and representing $14.5 billion in unrealized losses that Strategy disclosed in a first-quarter SEC filing.
MSTR is buying at a pace that dwarfs new supply. Strategy accumulated 46,233 BTC in March, while miners produced approximately 16,200 BTC, meaning that a single company absorbed almost three times the bitcoins that the entire global mining network generated in the same period.
Meanwhile, Saylor also revealed that Strategy’s breakeven annual rate of return on its STRC preferred stock product is approximately 2.05%. If bitcoin appreciates faster over time, the company can cover its preferred dividends indefinitely without issuing new MSTR shares.
The figure quantifies both the attractiveness and fragility of the financing model. A 2% hurdle is low by bitcoin’s historical standards, but it assumes that bitcoin never deviates or declines for an extended period while dividends continue to accrue.
STRC is the mechanism that makes the purchasing machine work. The preferred stock product recorded hundreds of millions in new inflows around its recent ex-dividend date, providing the capital for continued accumulation. The strategy continues to buy as long as investor appetite for STRC remains.
Bitcoin traded at $71,800 on Monday, according to data from CoinDesk, up 7.9% on the week and remained above $70,000 for the fourth consecutive day since the ceasefire in Iran was announced.
Whether Saylor’s “thinking big” translates into a purchase big enough to move the market depends on size. At Strategy’s recent pace of over 40,000 BTC per month, the upcoming filing could push total holdings to over 800,000 before the end of April.
