[Background]
Profiled as the de facto leading Bitcoin institution, Strategy (MSTR) recently announced the addition of 4,980 bitcoins to its balance sheet, holding 597,325 units as of June 29th, 2025.
The recent purchase was conducted amid the current positive sentiment, further solidifying MSTR's pro-cyclical approach.
[Pro-Cyclical MSTR]
Strategy employs a dollar-cost averaging (DCA) method in its purchases, but has a tendency to cyclically weight its purchase program. When spot prices sharply declined back in 2022, the company's yearly purchases were modest at 8,109 bitcoins, while in 2023 acquisitions rose to 56,650 units. Last year (2024) MSTR accumulated a total of 257,250 bitcoins.
[2.98% of Bitcoin's Circulating Supply]
Owning 2.98 percent of circulating supply gives Strategy influence over bitcoin’s market dynamics. The company's continued purchases, often funded through convertible notes and equity sales, can drive upward volatility, particularly during buying sprees.
However, critics argue that such a large holding by a single entity conflicts with Bitcoin’s decentralized ethos, centralizing control and potentially impacting liquidity.
Since 2020, MSTR and its executive chairman Michael Saylor have inspired other institutions, with an escalating amount of them now holding bitcoin. This trend, alongside Bitcoin ETF approvals, signals growing institutional adoption but also intensifies competition for scarce bitcoin supply.
[MSTR as a Leading Indicator]
Aggregated with broader institutional demand, one could argue that bitcoin, at its current spot level, is undervalued. In the current market environment, Strategy’s purchase program can be seen as a leading indicator to the underlying asset.
Written by oinonen_t
