With Bitcoin trading near $69,000, Strategy is sitting on an unrealized loss on its large cryptocurrency holdings, yet the company’s founder shows no sign of pulling back.
Saylor’s Orange Dot ReturnsMichael Saylor posted what followers recognized immediately: the orange dot chart his company uses to signal a fresh round of Bitcoin buying.
The company is expected to confirm the exact amount acquired when it releases its weekly disclosure on Monday.
One preferred share program, known as STRC, recently pulled in enough funds to purchase more than 1,800 Bitcoin on its own.
But the math is getting harder to ignore. Strategy’s net asset value premium has slipped below 1, which means the market is no longer valuing the stock above the worth of the Bitcoin it actually holds.
When that premium disappears, the case for buying the stock instead of Bitcoin directly becomes harder to make. Continued share sales chip away at existing shareholders by increasing the total number of shares in circulation.
If Bitcoin were to climb back to its record high of $126,300, the company’s current stash would be worth more than $96 billion — a number that makes the dilution argument easier to stomach for believers in the trade.
Stock Chart Flashes Warning SignsA death cross has formed on the chart, with the 50-day moving average crossing beneath the 200-day moving average. The stock has also stayed below its Supertrend indicator since August, a pattern that signals a sustained downward trend under conventional technical analysis.
Featured image from Pexels, chart from TradingView
