MSTR shares surged by 10% on Sunday, tracking a rebound in Bitcoin prices. The stock movement came as the company, Strategy (MSTR), continued to demonstrate its commitment to building its Bitcoin treasury. The firm disclosed another purchase of more than 1,100 BTC this week, spending roughly $90 million at an average price of $78,815 per coin. Despite Bitcoin’s volatile price fluctuations, Strategy has maintained a long-term holding strategy, aiming to grow its Bitcoin reserves indefinitely. This stock rally coincided with Bitcoin’s resurgence, trading at $68,960, up from recent lows. Michael Saylor, Strategy's Executive Chairman, continues to back the strategy of accumulating Bitcoin through market downturns, defending the company's approach even as it grapples with a $5.1 billion unrealized loss on its Bitcoin holdings. Strategy’s Continued Commitment to Bitcoin Despite the turbulence in the cryptocurrency markets, Saylor remains steadfast in Strategy’s commitment to Bitcoin. The firm’s latest purchase of 1,142 BTC brings its total holdings to over 714,644 BTC. The total value of these holdings is approximately $49.36 billion at current market prices. However, despite the sizeable unrealized losses, Saylor has made it clear that Strategy does not intend to sell any of its Bitcoin during market downturns. Instead, the company aims to continue acquiring more Bitcoin each quarter, reinforcing its belief in the long-term value of the cryptocurrency. Source: X In a recent tweet, Saylor teased the latest Bitcoin purchase with a simple message, ”99>98,” indicating that the company was increasing its reserves once again. This message, shared on Sunday X, directs followers to the company’s Bitcoin portfolio tracker, where they can monitor Strategy’s growing Bitcoin holdings. The continued accumulation of Bitcoin, even amid market volatility, reflects Strategy’s strong belief in Bitcoin’s future role as a core asset. Bitcoin’s Impact on Strategy’s Financial Results The latest earnings report from Strategy reflects the challenges of holding a Bitcoin-heavy balance sheet. The company posted a significant quarterly loss, largely due to mark-to-market declines on its Bitcoin holdings. These fluctuations in Bitcoin's value have heavily influenced Strategy's financial performance, as seen in its multi-billion-dollar loss for the quarter. While the company’s performance in traditional markets remains subject to market forces, its Bitcoin strategy adds both volatility and long-term upside potential. Saylor emphasized that the losses were ”unrealized,” meaning they are tied to Bitcoin’s price fluctuations and have not been locked in through any sales. This underscores the company’s long-term holding posture, which is aligned with Saylor’s vision of Bitcoin as a strategic asset. He reiterated that the company’s core strategy remains unchanged: to buy Bitcoin during market downturns and hold it as a reserve asset. ”We’re in it for the long haul,” Saylor remarked. Saylor Advocates for Bitcoin’s Role in U.S. Strategy In an interview with Fox News, Michael Saylor made a case for the U.S. government to embrace Bitcoin as a strategic asset. Saylor argued that the U.S. should take a proactive approach to Bitcoin, just as it did with gold. He advocated for the U.S. to strategically purchase Bitcoin and pass pro-Bitcoin legislation to ensure that innovation stays onshore. He emphasized that Bitcoin is not just a speculative asset but a geopolitical asset that could strengthen the U.S.’s financial influence globally. Saylor’s comments reflect his belief that Bitcoin is becoming an essential component of the global financial system. If the U.S. does not act quickly, he warned, other nations may lead the way in shaping the rules, infrastructure, and monetary influence associated with Bitcoin. By taking early action, Saylor believes the U.S. could secure a dominant position in the global economy. Pierre Rochard Debunks MSTR Liquidation as BTC Recovers According to a Coinpaper report, Bitcoin OG Pierre Rochard has recently weighed in on concerns regarding the company’s Bitcoin strategy, adding clarity around liquidations and the market’s reaction to downturns. Rochard rejected claims that the company was facing liquidation risk. His remarks came as Strategy’s stock and Bitcoin’s price were both affected by broader market conditions, with Bitcoin showing signs of price recovery after recent declines. Amid the BTC price recovery, crypto analyst Anıl has offered his insights on Bitcoin's price action. He noted that Bitcoin’s weekly close on the CME was around $68,980, suggesting that it’s normal for the price to stay near this range to avoid creating a new gap. Source: X As per the analyst, the move toward the $70,000–$71,000 range left a CME gap at $69,000, which ”is likely not anyone’s preferred scenario.” According to Michael Van De Pope, since the CME gap is at $69k, the BTC price trend may continue like that tomorrow. However, by Monday, when markets open, the BTC price may see a jump. Consequently, if Bitcoin price can maintain or exceed the $70,000 mark, it may signal the beginning of a more sustained rally towards $75,000. However, a failure to hold these levels could lead to a retest of lower support zones.
