Strategy co-founder, Michael Saylor, has hinted at an upcoming Bitcoin purchase by his company, marking the eighth consecutive week of Bitcoin acquisitions in their latest buying spree. Saylor, who has been growing his social media followership — now at 4.4 million — over the last couple of years, shared a Bitcoin BTCUSD chart to signal this impending purchase.
“Orange is my favorite color,” he tweeted, referencing the color usually associated with Bitcoin. Saylor’s increasing social media presence aligns with Strategy’s escalating media attention, resultant from the company’s aggressive Bitcoin acquisition strategy.
On May 26, Strategy made its most recent purchase of 4,020 BTC, estimated at around $427 million at the time of the transaction. This acquisition brings the company’s total Bitcoin holdings to a massive 580,250 BTC. Based on data from Bitcoin Treasuries, Strategy now ranks as the single biggest known Bitcoin holder, its holdings even exceeding the combined total of Bitcoin held by the US and Chinese governments.
Traders often perceive Strategy as a proxy bet for Bitcoin, given its significant association with the digital asset. CryptoQuant analyst, Ki Young Ju, suggests that the company’s rapid collection of Bitcoin could be shifting market dynamics. Executives from crypto-native Sygnum Bank have stated that institutional buying could potentially cause a supply shock, pushing BTC prices upwards.
However, not everyone is convinced by Strategy’s Bitcoin holdings. Some market participants have started questioning the authenticity of Strategy’s reported Bitcoin numbers, expressing the need for regular proof of reserve audits. Critics argue that Strategy does not hold the amount of Bitcoin it claims to have, instead, possessing paper Bitcoin. Saylor responded to these criticisms by stating that proof of reserve audits could expose large institutions to potential threats by revealing their wallet details.
Many industry professionals and business leaders often cite this high level of transparency, inherent in public blockchains, as one of the main obstacles to institutions integrating their business operations onchain.
