{"id":23268,"date":"2025-04-22T09:18:39","date_gmt":"2025-04-22T06:18:39","guid":{"rendered":"https:\/\/forklog.com\/en\/experts-assess-strategys-bitcoin-purchases-on-market-impact\/"},"modified":"2025-04-22T09:18:39","modified_gmt":"2025-04-22T06:18:39","slug":"experts-assess-strategys-bitcoin-purchases-on-market-impact","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/experts-assess-strategys-bitcoin-purchases-on-market-impact\/","title":{"rendered":"Experts Assess Strategy’s Bitcoin Purchases on Market Impact"},"content":{"rendered":"

The billion-dollar acquisitions of digital gold by Strategy have had minimal long-term impact on its price, according to a TD Cowen study, as reported by CoinDesk<\/a>.<\/p>\n

On average, Strategy’s coin purchases account for about 3.3% of the weekly trading volume and are largely unaffected by price fluctuations, analysts noted. Excluding the eight weeks when the corporation paused its buying, this figure rose to approximately 8.4%.<\/p>\n

The correlation coefficient between Strategy’s weekly bitcoin purchases and the asset’s end-of-week price was a mere 25%.<\/p>\n

This finding contradicts a popular theory among skeptics that the corporation’s actions support the cryptocurrency’s price and that without constant demand, its value would decline.<\/p>\n

Another common narrative is that Strategy’s purchases exceed the mining of digital gold, creating upward pressure on the price. While technically true, the analysis reveals a misunderstanding of the bitcoin market’s dynamics.<\/p>\n

In the past six months, the volume of secondary trading in the leading cryptocurrency has exceeded mining output by nearly 20 times.<\/p>\n

Even excluding Strategy’s actions, secondary market activity still surpasses new supply by 17 times. Under these conditions, miners and buyers cannot set prices, experts emphasized.<\/p>\n

\n

“Strategy’s acquisitions represent a very small fraction of total trading volume, so the idea that it somehow significantly influences price dynamics seems absurd,”<\/em> the review stated.<\/p>\n<\/blockquote>\n

Are Shareholders Satisfied?<\/strong><\/h2>\n

Strategy’s bitcoin strategy has yielded substantial profits for its investors. Since the start of 2023, the value of the corporation’s coins has increased by 306%, while the number of fully diluted shares rose by 94%.<\/p>\n

According to TD Cowen, the company is well-positioned to continue in this direction without destabilizing the market it targets.<\/p>\n

\n

“We expect Strategy to continue delivering positive returns in the foreseeable future,”<\/em> the specialists noted.<\/p>\n<\/blockquote>\n

New Acquisitions<\/strong><\/h2>\n

On April 21, the company announced an increase in its bitcoin holdings by 6556 BTC<\/a>. Strategy spent $555.8 million, averaging $84,785 per coin. The investment’s return since the beginning of the year was 12.1%.<\/p>\n

From April 14 to 20, Strategy sold 1.76 million common shares (MSTR) and over 91,000 preferred shares and bonds (STRK), raising a total of $555.5 million.<\/p>\n

Earlier, the company announced plans to raise up to $21 billion in MSTR and $21 billion in STRK over the next three years to accumulate more coins as part of its \u201c21\/21 plan\u201d<\/a>.<\/p>\n

As of April 20, $1.53 billion in MSTR and $20.96 billion in STRK remained available for issuance.<\/p>\n

With the latest acquisition, Strategy now holds a total of 538,200 BTC valued at $36.47 billion. The average purchase price is equivalent to $67,766 per BTC.<\/p>\n

Back in the first quarter, the company reported<\/a> unrealized losses amounting to $5.91 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"

The billion-dollar acquisitions of digital gold by Strategy have had minimal long-term impact on its price, according to a TD Cowen study, as reported by CoinDesk. On average, Strategy’s coin purchases account for about 3.3% of the weekly trading volume and are largely unaffected by price fluctuations, analysts noted. Excluding the eight weeks when the […]<\/p>\n","protected":false},"author":1,"featured_media":23267,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1538,1207,1138,167],"class_list":["post-23268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-purchase","tag-microstrategy","tag-opinions","tag-research"],"aioseo_notices":[],"amp_enabled":true,"views":"27","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/23268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=23268"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/23268\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/23267"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=23268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=23268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=23268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}