Michael Saylor Shifts Funding Strategy for Bitcoin Purchases
Michael Saylor, chairperson of the executive committee, is increasingly seeking out alternative funding sources to raise capital for Bitcoin acquisitions, indicating a move away from simply diluting equity.
On March 19, a post on X highlighted that the company purchased nearly 18,000 BTC during the week of March 8, followed by over 22,000 BTC the next week—marking the highest weekly total since November 2024.
While the sheer volume of purchases is impressive, it’s the financing methods that point to a broader change.
Historically, funding for Bitcoin purchases primarily relied on issuing MSTR stock, which diluted shareholder equity. However, recent trends reveal a notable shift.
During the week of March 8, the company raised around $900 million through stock sales, with only $377 million coming from STRC-related financing. In the subsequent week, contributions from equity dropped to about $396 million, while funding via STRC surged to approximately $1.18 billion.
This suggests that STRC financing is becoming increasingly significant. Currently, equity issuance accounts for approximately 64% of the funding, but its share is decreasing, with STRC’s contribution growing from virtually nothing a year ago to about 8% now.
To add further context, on-chain data from Glassnode indicates that Bitcoin’s rise towards the mid-$70,000s is mainly propelled by demand in the spot market, rather than leverage-based speculation.
As ETF inflows see a resurgence, institutional interest appears to be rekindled. The cumulative volume delta in the spot market across major exchanges has turned positive, suggesting a transition from selling to accumulating.
In fact, selling pressure on Binance has lightened up, and activity on Coinbase has stabilized, hinting at a possible reintegration of institutional investors into the market.
This improved market structure could support additional gains, especially if Bitcoin manages to hold above the $70,000 mark, which many see as pivotal for a potential climb into the $78,000-$82,000 range.
