The last four times Michael Saylor announced a corporate Bitcoin (BTC) purchase at Strategy, the stock price declined. Historically, the market has reacted positively to his tweets.
Strategy (formerly MicroStrategy) has an average cost basis of $66,357 per Bitcoin, considerably lower than current prices, yet it has incurred losses on its last 13 Bitcoin purchases.
Calculating the price of Strategy stock (MSTR) as of the November 11 announcement—during a significant price gap—shows it is lower than the price at all 13 recent purchases.
Saylor’s recent Twitter activity regarding BTC acquisitions on January 21, January 27, February 10, and February 24 resulted in MSTR decreasing both on those days and the following day.
While Saylor’s tweets provide insight to the market, they aren’t the only source of information regarding BTC purchases. He has a practice of teasing announcements through SaylorTracker.com before revealing the transactions.
Additionally, Saylor often pre-announces large BTC purchases via convertible debt and ATM (at-the-money) share sales, so the market usually anticipates these acquisitions, meaning “news” of actual purchases may not contain new insights for investors.
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