Bitcoin News
By Dan Saada
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Saylor's Orange Code. Saylor often does this on Sundays. He drops a vague, cryptic message, and observers spend the…
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845,050 BTC and a Billion in Margin. Strategy currently holds 845,050 BTC. That's about 4% of the total maximum supply of bitcoins — a…
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Preferred Stock Buyback, a Sign of Balance. There's a detail that's easily missed in all the excitement around the "orange.
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On September 20, Michael Saylor posted a chart. Just that. A chart showing the complete history of Bitcoin purchases by Strategy, with a short caption: "a bit more orange.
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But the markets got the message — or at least, they think they did.
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The problem is, nothing is official yet. To confirm a purchase, Strategy must file a form with the Securities and Exchange Commission — the SEC — detailing the exact amount, the…
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The last confirmed purchase dates back to the end of August. Between August 24 and 30, Strategy picked up 4,603 BTC for $369.7 million. Average price paid: $80,318 per bitcoin.
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The company's flexible cash reserves hover around $1.30 billion. Enough to buy. And the mechanisms to finance these purchases are multiple: available cash, new stock issuances,…
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Related topic: Saylor defends Bitcoin's $1.6 trillion value against Calacanis's harsh criticism
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And there's something else. Strategy also manages a separate reserve of $5.10 billion, dedicated to covering dividends on its preferred shares and interest on its debt.
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It's unclear if the next purchase will come from the $1.30 billion or a new issuance. Probably both, depending on the amounts.
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There's a detail that's easily missed in all the excitement around the "orange." Strategy recently allocated $139.3 million to buy back 1,420,467 STRC preferred shares.
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It says something about how the company manages its capital. Strategy doesn't just hoard Bitcoin.
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So the picture is more nuanced than it seems. Yes, Strategy remains the largest holder of Bitcoin among publicly traded companies. Yes, Saylor posted an orange chart on a Sunday.
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The concentration in Bitcoin exposes the balance sheet to enormous fluctuations. A 10% movement in BTC price means billions shifting one way or the other on Strategy's accounts.
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