Michael Saylor indicates fresh Bitcoin acquisition following weekend price drop below Strategy's average purchase price
Michael Saylor, executive chairman of Strategy, suggests the company took advantage of Bitcoin's weekend decline to make another purchase as BTC temporarily dropped beneath the firm's average acquisition cost.
Michael Saylor, the founder of Strategy, has suggested that his company expanded its Bitcoin portfolio following a weekend downturn that saw the digital currency drop by over 13%, temporarily causing the firm's substantial BTC holdings to show unrealized losses.
On Sunday, the Strategy executive chairman shared a post on X stating "More Orange," accompanied by a chart illustrating his company's $55 billion in Bitcoin acquisitions dating back to August 2020. This chart is frequently shared by Saylor as an indication that his firm has executed or intends to execute a Bitcoin purchase.
This would represent Strategy's fifth acquisition of Bitcoin (BTC) in the current year, with the company's most substantial purchase occurring on Jan. 20, when they acquired 22,305 Bitcoin. As the dominant Bitcoin treasury corporation, Strategy maintains ownership of more than 712,647 Bitcoin.
The combination of Strategy's initial Bitcoin acquisitions and Bitcoin's price appreciation over time has resulted in the company maintaining profitability on its Bitcoin portfolio throughout most of the past five years.
Nevertheless, the weekend decline that saw Bitcoin tumble from $87,970 down to $75,892 momentarily brought the price underneath Strategy's average cost basis of $76,040, though Bitcoin subsequently recovered to reach $76,765.
The market downturn followed US President Donald Trump's Friday announcement nominating Kevin Warsh, a former Federal Reserve governor, to succeed Jerome Powell as chairman of the central bank.
Although Warsh has expressed positive views regarding Bitcoin, market participants largely perceive him as a more hawkish candidate for Fed chair who would advocate for fiscal discipline, reduced inflation rates, and a departure from quantitative easing policies.
The precious metals markets also experienced significant declines following Trump's announcement — with gold and silver dropping by double-digit percentages after a months-long surge to record levels — while the Standard and Poor's 500 stock market index declined approximately 0.43%.
Crypto market sentiment is at a six-week low
The overall sentiment within the cryptocurrency market appears to be deteriorating as well, with Changpeng 'CZ' Zhao, the former CEO of Binance, revealing on Saturday that he now feels "less confident" regarding the "Bitcoin supercycle" theory he had forecasted the previous month.
"Given all the FUD and all the emotions that was strirred up in the community, I'm less confident about it now," he said during a Binance Square Ask Me Anything stream.
On Sunday, the Crypto Fear & Greed Index score dropped six points to reach 14 out of 100, marking the lowest reading recorded in more than a month.