Strategy bought another 1,037 BTC last week. The company was formerly called MicroStrategy and is led by Michael Saylor. It is the largest corporate holder of Bitcoin.
The report came out on November 9. The company's total holdings grew to 850,364 BTC.
Why this matters to a trader. Strategy's reports are read as a gauge of corporate demand for Bitcoin. This is one constant buyer that does not sell into drawdowns.
How many bitcoins are on the balance sheet?
- 1,037 BTC - the purchase over the past week
- 849,327 BTC - holdings before this transaction
- 850,364 BTC - holdings after it
The buying rhythm. The company buys Bitcoin in weekly tranches and reports on Mondays.
Where does the money for purchases come from?
Strategy's model is simple. The company raises money on the market and uses the proceeds to accumulate Bitcoin.
- Shares. The company raises capital by issuing its own securities.
- Debt instruments. The second source of money for purchases.
- Bitcoin on the balance sheet. BTC is bought with the proceeds and stays in reserve.
What does this mean for a trader?
The purchase size is small. 1,037 BTC is a fraction of a percent of Bitcoin's daily turnover. A transaction like that cannot turn the market around.
The main point: the significance is not in the volume but in the continuity. As long as reports keep coming out every week with a plus, there remains demand in the market that does not depend on the current price.
What happens next?
Strategy's next report is next week. A break in the buying streak or a pause will be a signal in itself.
- What to watch: whether the next report comes out with a plus
- If you need trading volume for crypto: you can pick a challenge for your market
Saylor buys in tons, you - in hundredths
The arithmetic is familiar. The idea is the same as the big player's, but the volume is whatever fits into a personal deposit. A 3% move on BTC with five thousand gives one hundred fifty dollars, and that ceiling will not go any higher. In prop trading, the trading nominal is provided by the company: you pass a paid evaluation, trade within its loss limits and take an agreed share of the profit. It is worth understanding the scheme before the market makes its next big move.