Key Developments
- •Strategy (formerly MicroStrategy) has acquired 10,624 BTC for $962.7 million, marking its largest weekly purchase since July and bringing its total holdings to 660,624 BTC.
- •This acquisition serves as a practical demonstration of Michael Saylor’s “Digital Credit” thesis, aiming to prove its viability to Abu Dhabi investors by generating a 24.7% Bitcoin Yield Year-to-Date.
- •On-chain data indicates a decline in Long-Term Holder (LTH) supply to 14.33 million BTC, suggesting seller exhaustion as Bitcoin’s price approaches $89,000.
Strategic Bitcoin Deployment
Strategy has executed a significant capital deployment into Bitcoin, totaling $963 million. This transaction represents one of its largest weekly acquisitions of the year. The purchase secured 10,624 BTC at an average price of $90,615. This move is interpreted by institutional desks as a strategic validation of the “Digital Credit” banking model that Michael Saylor recently presented to sovereign wealth funds.
Demonstrating the Digital Credit Thesis
The substantial Bitcoin acquisition by Strategy underscores the company's commitment to its “Digital Credit” thesis. This strategy involves leveraging Bitcoin holdings to generate yield, which Saylor has been actively promoting to potential investors, particularly in Abu Dhabi. The aim is to demonstrate the robustness and profitability of this model, evidenced by a Year-to-Date Bitcoin Yield of 24.7%.
Market Signals and Seller Exhaustion
Analysis of on-chain data reveals a notable decrease in the supply held by Long-Term Holders (LTHs). The LTH supply has fallen to 14.33 million BTC, a development that signals potential seller exhaustion in the market. This trend often precedes or accompanies price increases, especially as Bitcoin’s price reclaims levels around $89,000.
Confirmation of Investment Strategy
The recent acquisition activity by Strategy serves as a direct affirmation of its ongoing investment strategy. The company continues to accumulate Bitcoin, reinforcing its position as a significant institutional holder. This sustained accumulation is closely watched by the market as an indicator of confidence in Bitcoin’s long-term value proposition.