Saylor says Bitcoin's bottom is in and price will climb back above $100,000

what happened

According to GuruFocus, Strategy executive chairman Michael Saylor told Bloomberg Television that Bitcoin has already formed its bottom. He said the slide below $60,000 earlier in the cycle was the low, and the price has since rebounded to roughly the $80,000 area. When he spoke, Bitcoin was trading near $81,142. Saylor also repeated the company's long-term view that the asset could grow about 20% to 30% a year over the next two decades.

Strategy keeps buying coins. Between October 5 and 11, it acquired 250 Bitcoin for $21.5 million, at an average of $86,194 per coin. Its total now stands at 848,250 Bitcoin, which cost roughly $64 billion, implying an average cost near $75,444. The purchase was partly funded by selling 125,183 common shares for about $21 million. Meanwhile, the company spent $192.4 million to repurchase 1.9 million STRC preferred shares, roughly nine times the size of its latest Bitcoin buy.

why it matters

The key link for markets is between Bitcoin's price and Strategy's average cost of about $75,444. A move above $100,000 would lift the unrealized value of the holdings, while a weaker coin could deepen losses given the complex capital structure, including share issuance, preferred buybacks and debt obligations. Investors are also watching the premium or discount at which MSTR trades to the value of its Bitcoin.

market impact

Bitcoin and MSTR: share issuance and preferred buybacks shape expectations for Strategy's capital structure

tags

instruments