Strategy co-founder Michael Saylor signaled an impending Bitcoin (BTC) purchase on Sunday, as the company’s total holdings crossed $71 billion.

The treasury company’s most recent purchase occurred on July 14, when it bought 4,225 BTC for $472.5 million, bringing its total holdings to 601,550 BTC, valued at over $71.4 billion.

The company is up about 66.5% on its Bitcoin investment, accounting for over $28.5 billion in unrealized gains, according to SaylorTracker.

Bitcoin treasury companies, led by Strategy, continue to be one of the main drivers of Bitcoin demand in the current market cycle, alongside exchange-traded funds (ETFs), institutional investors, and centralized crypto exchanges.

Related: Lawsuits piling up against Strategy could take years, go nowhere, lawyer says

Strategy’s valuation surges alongside $4 trillion total crypto market cap

The company’s stock surged by about 21.52% in the last month, bringing Strategy’s total valuation to over $118 billion. 

Strategy’s stock rally came amid a rise in the crypto market, with the total crypto market capitalization crossing the $4 trillion mark in July and Bitcoin hitting a new all-time high.

In December 2024, the BTC treasury company entered the Nasdaq 100 stock market index as institutional demand for Strategy’s stock grew.

Certain institutional investors want exposure to Bitcoin but cannot hold Bitcoin directly in their investment funds. These investors hold shares of Bitcoin treasury companies or purchase their corporate debt products as a proxy for holding BTC.

“There are trillions of dollars of managed capital, and some of that has strict mandates associated with it,” macroeconomist Lyn Alden wrote. 

“There are stock funds where the portfolio manager can only buy stocks. He or she cannot buy bonds, ETFs, or commodities,” Alden gave as an example of the types of restrictions placed on asset managers.

Vanguard, one of the biggest institutional investment firms, has long opposed holding Bitcoin or offering Bitcoin directly to clients, but now holds 20 million shares of Strategy, or about 8% of the company’s outstanding stock.

The investment firm’s indirect exposure to Bitcoin through a publicly traded company highlights Bitcoin’s integration into traditional finance through legacy investment vehicles.

Magazine: Bitcoin OG Willy Woo has sold most of his Bitcoin: Here’s why

]]> https://earlybirdsinvest.com/saylor-signals-bitcoin-buy-as-strategys-stash-climbs-to-over-71b/feed/ 0 48744 https://earlybirdsinvest.com/strategys-perpetual-preferred-stocks-may-be-front-running-sp-500-inclusion/ https://earlybirdsinvest.com/strategys-perpetual-preferred-stocks-may-be-front-running-sp-500-inclusion/#respond Tue, 01 Jul 2025 09:24:43 +0000 https://earlybirdsinvest.com/strategys-perpetual-preferred-stocks-may-be-front-running-sp-500-inclusion/

Disclaimer: The analyst who wrote this article has shares in Strategy (MSTR)

Strategy’s (MSTR) perpetual preferred shares may be anticipating the bitcoin-accumulation company’s inclusion in the S&P 500 index after the largest cryptocurrency posted a record-high monthly close at a price some analysts calculate lifted quarterly earnings to a level that qualifies it for the U.S. equity benchmark.

That may not be the only reason for their popularity, however. The stocks all offer yields above the Federal Reserve’s target rate of 4.25%-4.5% at levels that may be enough to attract investor interest, especially given President Donald Trump’s calls for U.S. interest rates to be lowered.

While the official announcement regarding S&P 500 inclusion is not due until September. Still, on Monday, MSTR rose 5%, pushing the stock above $400, its highest since May 22. More notable gains came from the perpetual preferred shares, STRK, which climbed 15% and STRF, which added 7.5%. The STRD shares rose 3%.

Bitcoin

ended June at $107,750, a level that translates into a positive earnings impact of about $11 billion for Tyson Corner, Virgina-based Strategy, and boosts earnings per share to around $39.50, according to MSTR analyst Jeff Walton. That’s enough for it to post a net positive figure from the most recent four quarters, the last barrier it faced to be added to the S&P 500.

Shares often rise when they join, or are expected to join, the benchmark because membership opens up greater demand from institutions who are not allowed to invest in companies that haven’t made the cut.

STRK’s advance pushed the price to $121 with an effective yield of 6.6%. Since its Feb. 6 launch, STRK has delivered a 42% return, outperforming both bitcoin’s 11% jump and the S&P 500’s 2%. The figures exclude dividend payments associated with these products. STRF now offers an effective yield of 8.8% and STRD 11.1%.

Altogether, these developments raise the question of whether recent market moves represent front running ahead of a possible inclusion of MSTR in the S&P 500 alone.

Read more: Strategy Could Be Eligible for S&P 500 Inclusion in June if Bitcoin Closes Q1 Above $96K

Strategy co-founder Michael Saylor posted the Bitcoin (BTC) chart signaling an impending BTC acquisition by the company, marking week eight of consecutive purchases by the company during this latest buying stint.

“Orange is my preferred color,” Saylor wrote to his 4.4 million followers on X — a number that has been steadily growing over the past two years as the Strategy co-founder commands increased media attention due to the company’s corporate treasury plan.

The company’s most recent Bitcoin acquisition on May 26 of 4,020 BTC, valued at roughly $427 million at the time of purchase, brought Strategy’s total holdings to 580,250 BTC.

According to data from Bitcoin Treasuries, this makes Strategy the single largest known Bitcoin holder, with the company’s BTC holdings dwarfing the amount of BTC held by the US and Chinese governments combined.

Strategy has become synonymous with Bitcoin, with many traders seeing it as a proxy bet for the digital asset.

The company’s rapid accumulation of BTC is already altering market dynamics, according to CrytoQuant analyst Ki Young Ju. Institutional buying could also trigger a supply shock, sending BTC prices higher, executives from crypto-native Sygnum Bank told Cointelegraph.

Related: Michael Saylor shoots his shot for Rogan spot: ‘Let’s talk about Bitcoin’

Debate erupts over Strategy’s Bitcoin proof of reserves

Strategy has been characterized as an emerging financial superpower by authors like Adam Livingston. However, not all investors are convinced by Strategy’s reported Bitcoin accumulation numbers.

A growing number of market participants have voiced criticisms and suspicions that Strategy does not have the Bitcoin it purports to have in its corporate treasury, citing a lack of regular proof of reserve audits.

One individual responded to Saylor’s impending acquisition post by asking: “No proof of reserves is your preferred ‘trust me bro.’ When mempool? Or [are you] too scared to show that you do not have Bitcoin, but instead paper Bitcoin?”

The Strategy co-founder argues that proof of reserve audits are risky for large enterprises and institutions because they open up the institutions’ wallets to tracking and unwanted attention from potential threat actors.

This high degree of transparency inherent in public blockchains is often cited by industry professionals and business leaders as one of the main impediments to institutions putting their business operations onchain.

Magazine: Coinbase hack shows the law probably won’t protect you: Here’s why

]]> https://earlybirdsinvest.com/strategys-michael-saylor-signals-impending-bitcoin-purchase/feed/ 0 39576 https://earlybirdsinvest.com/strategys-25-gain-leads-as-crypto-stocks-soar-on-trump-tariff-pause/ https://earlybirdsinvest.com/strategys-25-gain-leads-as-crypto-stocks-soar-on-trump-tariff-pause/#respond Wed, 09 Apr 2025 19:14:42 +0000 https://earlybirdsinvest.com/strategys-25-gain-leads-as-crypto-stocks-soar-on-trump-tariff-pause/