Under the leadership of Michael Saylor, the Bitcoin giant Strategy is preparing for a new acquisition phase following a 620 million euro bond issuance in Europe. Company data reveals that within the last two days, Strategy has conducted five different test transactions through Coinbase Prime. Large institutional investors often perform system tests prior to substantial acquisitions to mitigate potential losses. This step by the company is seen as an indicator of an imminent Bitcoin purchase or series of purchases.
Strategy Expands in European Capital Markets
Established in business intelligence and data analytics, Strategy ventured into the European capital market for the first time in years after going public in 1998. The company recently purchased 397 Bitcoins on November 3, increasing its holdings to 641,205 BTC. These Bitcoins, acquired at an average cost of $114,771, demonstrate Saylor’s ongoing commitment to his “digital gold” strategy.
With Bitcoin trading around $101,800, Strategy’s move holds the potential to rekindle institutional interest. The company’s portfolio, valued at approximately $65 billion, constitutes one of the largest institutional reserves in the Bitcoin market.
The expansion of Strategy’s financial base through European bond issuances enables more aggressive acquisitions. The test transactions via Coinbase Prime are viewed as preparations for substantial BTC transfers. The firm is expected to announce a significant purchase in the short term.
Contrasting Moves: Owen Gunden’s Bitcoin Sales
Conversely, long-term Bitcoin holder “OG whale” Owen Gunden is moving in the opposite direction in the market. Data indicates that Gunden has sold BTC worth a total of $11 billion since October 21. Recently, he transferred 3,549 BTC (approximately $362 million) to an unknown address, followed by depositing 600 BTC ($61 million) into the Kraken exchange. Such large-scale transfers to exchanges typically increase selling pressure.
Gunden’s aggressive sales have the potential to exert short-term pressure on Bitcoin’s price. Nevertheless, Strategy’s possible major acquisition could alleviate this effect. The contributions of institutional purchases to market liquidity have the power to mitigate the impact of individual sales, indicating that the coming weeks may see price stability shaped by institutional flows.
Strategy’s and Gunden’s contrasting approaches highlight the complexity of the cryptocurrency market, with strategies evolving to maximize gains amidst changing market dynamics.