Michael Saylor’s “99>98”... Another Signal of Additional Bitcoin Buying

▲ Bitcoin (BTC)

Strategy, a major corporate holder of Bitcoin (BTC), has signaled the possibility of a 99th additional purchase by taking advantage of the current price trading below its average acquisition cost, showing an aggressive move aimed at turning unrealized losses into gains.

According to crypto media outlet U.Today on February 15 (local time), Strategy Executive Chairman Michael Saylor drew market attention by posting the cryptic phrase “99 > 98” on his X (formerly Twitter) account. The message is interpreted as hinting that a 99th Bitcoin purchase event is imminent, surpassing the 98 acquisitions the company has carried out so far. As of February 15, Strategy holds a total of 714,644 BTC, with its Bitcoin reserves valued at approximately $50.28 billion.

This latest move is part of a meticulously calculated numerical adjustment strategy. Strategy’s average purchase price stands at about $76,056 per BTC, and with Bitcoin currently trading around $68,900, the company is experiencing unrealized losses of roughly 7% to 9%. Analysts believe Saylor intends to execute a 99th purchase at current levels to lower the overall average cost through a dollar-cost averaging approach and improve the portfolio’s profit structure.

With Bitcoin forming a range in the high-$60,000 zone, the current market environment presents an attractive entry point for Strategy. Having accumulated Bitcoin consistently over the past five and a half years, the current price represents not only a discount from recent highs but also a level below the company’s long-term average acquisition cost. If the additional purchase is completed, Strategy will secure more Bitcoin at a price significantly lower than its historical average.

From a corporate valuation perspective, Strategy’s approach continues to maintain market confidence. The company’s market capitalization stands at nearly $61 billion, with its stock price closely tied to its adjusted net asset value based on Bitcoin holdings. As the excessive premium seen in the past has diminished, sensitivity to shareholder dilution in the process of raising capital for further Bitcoin purchases has declined. Saylor is leveraging this favorable market structure to further solidify the Bitcoin Standard.

Strategy has expanded its holdings beyond 714,644 BTC and continues to adhere to a long-term holding strategy resilient to market volatility. The decision to keep buying even when prices fall below the company’s historical entry levels reflects Saylor’s conviction in Bitcoin’s future as a store of value. By using mathematical models to lower its average purchase cost while maximizing holdings, Strategy aims to maximize returns in a potential future bull market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from it. The content should be interpreted for informational purposes only.*