Strategy Buys Bitcoin 'Every Second' But Doesn't Affect Price
Strategy does not influence the Bitcoin rate when buying, said the company's CFO Shirish Jajodia. The largest corporate holder of Bitcoin buys the cryptocurrency “around the clock” but does so in a way that does not influence the market.
“We buy bitcoin in a way that doesn’t change the price,” Jajodia explained on the Coin Stories podcast. Strategy’s treasurer and head of investor relations said the company carefully plans its purchases to avoid market impact.
Strategy began accumulating Bitcoin in 2020. At press time, the company holds 629,376 Bitcoin, worth about $70.85 billion, according to data from SaylorTracker.
“We manage our purchases so that they are a certain percentage of the market liquidity,” Jajodia explained. “That way, we don’t impact the price of Bitcoin.”
One way to make large trades without affecting market prices is to use over-the-counter (OTC) markets, where trading takes place privately rather than through public exchange order books.
The analysis shows that Bitcoin showed different dynamics during Strategy's largest purchases, with the price rising in some cases and falling in others after the deal was announced.
On November 25 last year, the company reported purchasing about 55,000 bitcoins for $5.4 billion between November 18 and November 24 at an average price of $97,862 per coin. A few weeks later, on December 17, bitcoin hit an all-time high above $106,000 amid a general rally following Donald Trump's victory in the US presidential election, according to CoinMarketCap data.
In another case, Strategy bought 21,021 BTC on July 29 this year for about $2.46 billion, but within four days the price fell by almost 4%, falling to $113,320 by August 2.
Despite this, traders continue to react with excitement whenever CEO Michael Saylor posts a Bitcoin price chart, hoping for an announcement of another major purchase.
Jajodia noted that the company adjusts the timing of its bitcoin purchases based on market conditions, but is active in the market almost constantly. “We are essentially buying bitcoin 24/7. Almost every day, every hour, every second, we are in the market,” he said.
“If the price drops, we can take advantage of the opportunity and act faster,” the top manager added.
Sailor often reminds his 4.5 million followers that he doesn't care about the price of Bitcoin – he's just accumulating the cryptocurrency to increase his holdings as much as possible.
On May 22, Saylor wrote on social media site X: “I only buy Bitcoin with money I can’t afford to lose,” after Bitcoin fell from its previous high of $112,000.
At the end of 2024, Saylor promised to continue buying the first cryptocurrency at peak prices, no matter how high the rate rises.
Source: cryptonews.net
