Strategy signals Bitcoin buy over $1.25B that could lift holdings past 700,000 BTC

Beincrypto reports Strategy Inc. (formerly MicroStrategy) has signaled it is preparing to execute a Bitcoin acquisition that would eclipse last week’s $1.25 billion purchase. On January 18, Michael Saylor posted a graphic to X captioned “Bigger Orange,” which market analysts widely interpreted as a signal of intent to surpass the 13,627 Bitcoin the firm recently acquired.

That previous tranche already made the company the largest corporate holder of Bitcoin, and a larger purchase would push Strategy’s total holdings above 700,000 BTC, trailing only BlackRock’s IBIT ETF and the roughly 1.2 million BTC estimated to be held by Satoshi Nakamoto. The planned accumulation comes amid a difficult stretch for the firm: its stock fell more than 50% last year and its market-to-net-asset-value premium has collapsed to about 1.0x, a squeeze that threatens the arbitrage model the company has used to fund purchases.

To sustain buying, Strategy raised about $25 billion in the past year through common-stock sales and new preferred shares such as STRC, and TD Cowen recently cut its price target to $440 from $500 while keeping a Buy rating, citing a decline in the firm’s proprietary “Bitcoin Yield.” Some observers, including analyst Shagun Makin, argue the company has built a scale-oriented accumulation model that traditional banks cannot easily replicate.

Key Topics

Crypto, Strategy Inc, Michael Saylor, Bitcoin, Blackrock Ibit, Spot Bitcoin Etfs