Following a 12-week run of gigantic Bitcoin (BTC) purchases, a recent announcement from MicroStrategy Co-founder Michael Saylor may have signaled that its Bitcoin-buying spree could be on ice.
Since launching its BTC gambit, MicroStrategy has acquired a whopping 471,107 BTC, an average price of $64,524.20 apiece, costing the firm roughly $30.39 billion.
MicroStrategy’s years-long Bitcoin gambit has paid off significantly, with the firm’s holdings now worth $46.97 billion. Of that, $16.51 billion is unrealized profits.
However, a Feb. 3 post from Saylor reveals that the firm has ended its 12-week BTC investment streak with no fresh purchases to report.
Furthermore, Saylor announced that the firm did not sell any class A shares as part of its “at-the-market” fundraising initiative.
The pause may be considered a “canary in the coal mine” scenario and signal potentially bearish action to come, especially given that the firm is already the largest corporate holder of BTC in the world.
The first and most obvious reason for the pause may be a simple matter of timing. Bitcoin has been exceptionally volatile as it wavers around the $100,000 price threshold.
Since Nov. 25, 2024, MicroStrategy has made all of its purchases when BTC’s value was above $90,000 and $100,000.
Out of all the BTC investments made since it began in August 2020, just three are running at a loss because BTC has since retreated from these highs.
The purchases made on Dec. 23, 2024 (BTC at $106,662), Jan. 21, 2025 (BTC at $101,191), and Jan. 27, 2025 (BTC at $105,596), constitute a total loss of just over $135 million.
Therefore, it’s very likely that the firm is eyeing the opportunity to make another bulk purchase. That, or there’s a chance that MicroStrategy’s latest stock sale effort yielded underwhelming results.