Saylor Signals Another Major Bitcoin Purchase
Strategy co-founder Michael Saylor posted “think bigger” on Sunday alongside the company’s bitcoin acquisition tracker — a pattern that has preceded every major BTC purchase since the company began accumulating in August 2020. The signal suggests another significant buy is imminent, likely to be disclosed in a Monday 8-K filing with the SEC.
The company’s most recent transaction on April 6 added 4,871 BTC for $329.8 million, bringing total holdings to 766,970 BTC at a blended cost basis of $75,644 per coin.
Strategy Is Buying Nearly Three Times What Miners Produce
In March alone, Strategy accumulated 46,233 BTC while the entire global mining network produced approximately 16,200 BTC. That means a single company absorbed nearly three times more bitcoin than every miner in the world generated during the same period.
At the current acquisition pace of over 40,000 BTC per month, Strategy could surpass 800,000 total holdings before April’s end — a milestone that would further cement its position as the largest corporate bitcoin holder in the world.
The 2% Dividend Model
Strategy revealed that its bitcoin holdings require just 2.05% annual growth to cover all preferred stock dividends indefinitely, without issuing new common shares. The metric, called the BTC Breakeven Annual Rate of Return, measures the minimum bitcoin appreciation needed to service dividend payments on preferred stock, including its STRC Variable Rate Series A Perpetual Preferred Stock.
Saylor stated that if bitcoin grows faster than 2.05% over time, the company can cover its dividends indefinitely — creating what he described as an “infinite cycle” of sustainable returns.
The STRC preferred stock currently yields 11.5% annually, trades near its $100 par value, and pays monthly cash dividends. Proceeds from STRC issuances fund additional bitcoin purchases, creating a self-reinforcing accumulation loop.
Billions Underwater, But Still Buying
Despite the aggressive accumulation, Strategy’s holdings remain significantly underwater. A first-quarter SEC filing disclosed $14.5 billion in unrealized losses, with the blended cost basis of $75,644 sitting roughly $5,000 above bitcoin’s current market price.
Bitcoin traded at $71,800 on Monday, up 7.9% on the week and holding above $70,000 for the fourth consecutive day following geopolitical developments including an Iran ceasefire announcement.
What This Means for the Market
Strategy has now completed 105 bitcoin purchases since August 2020. The company’s relentless accumulation continues to reduce the available supply of bitcoin on the open market, a dynamic that could amplify price movements during periods of increased demand.
The 2.05% breakeven threshold sits well below bitcoin’s historical annualized returns, suggesting significant margin for dividend sustainability. However, the model could face pressure if bitcoin prices stagnate or decline for an extended period, as the preferred dividend obligations remain fixed regardless of market conditions.
For traders and investors, Strategy’s accumulation pace and the sustainability of its dividend model remain key indicators to watch as the company approaches the 800,000 BTC milestone.