Bitcoin Holdings Update from Strategy Co-Founder
Michael Saylor, the co-founder of Strategy, hinted at the company’s decision to increase its Bitcoin holdings after the cryptocurrency experienced a drop of over 13% during the weekend. This decline momentarily brought the company’s significant BTC position into negative territory.
On Sunday, Saylor messaged Mr. X, mentioning “More oranges,” along with a chart detailing the company’s Bitcoin purchases valued at $55 billion since August 2020. He frequently shares this chart to indicate that the company has bought or is planning to purchase more Bitcoin.
This marks the fifth Bitcoin acquisition for Strategy this year, with the most substantial being the purchase of 22,305 Bitcoins on January 20th. Strategy has emerged as the largest Bitcoin treasury firm, holding over 712,647 Bitcoins in total.
Over the past five years, the company has mainly benefited from its Bitcoin investments, thanks to its early purchases and the rising value of Bitcoin.
However, as Bitcoin’s price fell from $87,970 to $75,892 over the weekend, it briefly dipped below Strategy’s cost basis of $76,040. Nevertheless, Bitcoin has since recovered to $76,765.
This market selloff occurred following President Donald Trump’s nomination of former Federal Reserve President Kevin Warsh to succeed Jerome Powell as the chair of the central bank.
While Warsh has been positive about Bitcoin, he is viewed as a more hawkish candidate for the Fed chair, advocating for fiscal restraint, lower inflation, and a reduction in quantitative easing.
Additionally, gold and silver prices also saw a significant decline after Trump’s announcement, initially rising to multi-month highs before dropping sharply, while the S&P 500 index decreased by about 0.43%.
Sentiment in the crypto market appears to be declining, with former Binance CEO Changpeng “CZ” Zhao expressing doubts on Saturday about the “Bitcoin supercycle” he had anticipated last month.
“With all the FUD (fear, uncertainty, doubt) and emotions stirred up in the community, I’m not feeling particularly confident right now,” he shared during an Ask Me Anything session on Binance Square.
The Crypto Fear & Greed Index fell six points to a score of 14 out of 100 on Sunday, marking its lowest score in over a month.
Related: $1.82 billion withdrawn from Bitcoin and Ether spot ETFs amid rising metal prices.
