Michael Saylor sparked speculation following indications that his company, MicroStrategy, may resume accumulating Bitcoin after a short break. A recent social media post on X by Saylor, saying “Back to Work,” signaled a potential Bitcoin purchase after the firm paused buying last week.
The company temporarily paused its weekly Bitcoin purchases at the end of March, breaking a consistent accumulation streak. Its most recent verified takeover was on March 23, buying $77 million in Bitcoin at an average price of $74,326 per coin.
According to estimates from STRC.LIVE, the company might purchase 1,821 BTC during the next purchase based on the funds raised.
One of the pillars of this approach of MicroStrategy is its innovative funding mechanism. The company has turned towards its favored stock offering, which is called STRC, to fund Bitcoin acquisitions.
This provides an annual dividend of about 11.5%, which attracts investors and also helps to raise new capital.
Since its launch, STRC has assisted in the acquisition of over 50,000 BTC; thus, it is at the core of the expansion strategy of the company treasury.
Moreover, the firm has also outlined strategies to raise to $44.1 billion by issuing equity and preferred stock, suggesting a long-term commitment to Bitcoin.
MicroStrategy is the biggest publicly traded company that holds Bitcoin and owns around 762,099 BTC. At current prices, its treasury is worth over $50 billion.
However, its portfolio is slightly underwater at current prices of approximately $69,000 due to the average cost of acquisition of approximately $75,694 per BTC.
Bitcoin has demonstrated resilience, increasing by some 2.6% in last week, though down over 20% year-to-date.
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The accumulation strategy that Saylor has employed has divided the market. The advocates believe that MicroStrategy is becoming an effective leveraged proxy to exposure to Bitcoin in equity markets, which provides investors with indirect access to the asset.
Critics cite the increasing financial liability of preferred stock dividends, cautioning that continued declines in Bitcoin would increase balance sheet risks.