Shirish Jajodia, an employee of Strategy managing the digital asset portfolio, explained why the purchase of Bitcoins by his firm does not affect the cryptocurrency's price.
In August, Strategy and many other companies continued to acquire BTC; however, the coin's price fell by 3.22%, and a bearish trend clearly emerged in the market. Therefore, members of the crypto community began to debate again about which Bitcoins organizations are buying — real or paper ones that merely appear on the virtual balance of custodial service providers. Shirish Jajodia decided to put an end to these speculations and explained the reason for the lack of visible effect from investments in cryptocurrency.
We buy Bitcoins in such a way that their price does not change. We execute trades as if we were part of market liquidity, so the BTC price does not move. We acquire Bitcoins around the clock. Almost every day, every hour, every second, " said Shirish.
Shirish Jajodia
According to Jajodia, Strategy employees are buying digital assets on the over-the-counter market instead of purchasing them on trading platforms, thereby not reducing the supply, which would inevitably lead to an increase in the coin's value.
Most likely, the company's employees are making numerous small transactions, and at some point, the head of the firm, Michael Saylor, reports that the enterprise has invested several million dollars in cryptocurrency, buying hundreds of coins.
Announcement moments of Bitcoin purchases by Strategy
Using this strategy, since September 2020, Strategy has accumulated 629,376 Bitcoins worth $71.05 billion at the current rate. Investments in digital assets have brought the organization an unrealized profit of 54%, meaning that the average return on investment in BTC has been 10.8% per annum.