Michael Saylor’s company, Strategy, known for being the largest publicly traded holder of Bitcoin, significantly slowed its pace of BTC accumulation in October. The firm added just 778 BTC during the month—its lowest monthly total in 2024—representing a steep 78% decline compared to September’s 3,526 BTC purchase.
According to a recent filing with the U.S. Securities and Exchange Commission, Strategy purchased 390 BTC last week for approximately $43.3 million. The average acquisition price was $111,117 per coin, while Bitcoin briefly surged past $113,000 during the same period. This latest transaction brought the company’s total Bitcoin holdings to 640,808 BTC. In total, these assets cost Strategy around $47.4 billion, averaging $74,032 per Bitcoin.
Despite Bitcoin’s recent price rally and increased market momentum, Strategy’s rate of accumulation has markedly decelerated. October’s purchase volume is not only a sharp drop from September but also pales in comparison to the massive acquisitions earlier this year—such as the 31,466 BTC bought in July and 26,695 BTC in May.
Analysts suggest that the slowdown may be tied to financial headwinds. According to CryptoQuant analyst JA Maartun, Strategy is facing challenges in capital raising. The premium on its equity offerings has collapsed from 208% to just 4%, significantly reducing the effectiveness of issuing new shares to fund Bitcoin purchases.
“Strategy isn’t buying in bulk anymore—but they haven’t stopped,” Maartun observed, noting that the company’s long-term commitment to Bitcoin remains intact despite tightening funding conditions. He emphasized that the broader vision of Bitcoin accumulation has not changed, even as the pace takes a temporary hit.
Interestingly, 2024 is still shaping up to be the firm’s most aggressive year for BTC investment. To date, Strategy has funneled roughly $19.53 billion into Bitcoin acquisitions. With two months remaining in the year, the company has an opportunity to surpass its 2023 record of $21.76 billion in BTC purchases.
The most recent acquisition also coincided with a significant dip in Strategy’s stock price. The company’s Class A shares (MSTR) dropped below $280 last week, continuing a downtrend since peaking at approximately $456 in July. This decline could also be contributing to the reduced pace of Bitcoin buys, as a weaker share price may hinder capital-raising efforts.
Despite these short-term slowdowns, Strategy’s long-term strategy remains consistent: accumulate Bitcoin as a core treasury asset. The approach, pioneered by Michael Saylor, revolves around the belief that Bitcoin offers superior long-term value preservation compared to cash or traditional fiat reserves.
Over time, Strategy has consistently positioned itself as a bellwether for institutional Bitcoin adoption. Its large, public BTC holdings have influenced corporate treasuries and sparked debates about Bitcoin’s role as a reserve asset.
Looking ahead, several factors could influence Strategy’s purchasing behavior. The macroeconomic environment, including interest rate policies and inflation data, could affect capital availability and investor sentiment. Additionally, Bitcoin’s performance during the fourth quarter, traditionally a strong period for crypto markets, may incentivize or discourage further accumulation.
Regulatory developments also remain a wildcard. Any shifts in U.S. securities law or cryptocurrency taxation could impact Strategy’s strategy toward BTC. Moreover, the anticipated approval of spot Bitcoin ETFs could alter institutional access to Bitcoin, potentially reshaping Strategy’s competitive edge.
It’s also worth noting that Strategy’s slower purchases could be a calculated move rather than a reactive one. With Bitcoin prices climbing, the company may be waiting for a more favorable entry point rather than buying aggressively at higher valuations. This cautious approach could reflect a more disciplined, valuation-aware accumulation strategy.
In summary, while October marked a significant dip in Bitcoin purchases for Strategy, the company’s broader BTC investment thesis remains firmly in place. The slowdown reflects both external financial pressures and possibly internal strategic adjustments, but it does not signal a retreat from Bitcoin. As the year draws to a close, all eyes will be on whether Strategy can surpass its previous records and how it navigates the complex intersection of market cycles, capital availability, and crypto volatility.