Strategy’s MSTR has formed a ‘Golden Cross’ for the first time since March 2023, according to Barchart. This technical indicator occurs when the 50-day Moving Average (MA) crosses above the 200-day MA.
What’s interesting here is that in 2023, when the same ‘Golden Cross’ formed, there was an impressive rally of nearly 700% in the following 12 months. Now, MSTR has formed the same pattern again in October 2026, raising hopes of another sustained recovery.
Strategy’s Bitcoin game plan
Interestingly, this formation happened hours after Strategy repurchased $193 million worth of its STRC preferred shares while acquiring an additional 267 Bitcoin [BTC].
Well, the recent article from AMBCrypto had already suggested that Stratgey would add more Bitcoin when Syalor posted on X, saying,
We found room for more orange.
Besides that, the company also reported $5.3 billion in USD assets, providing a financial cushion to meet obligations and support its Bitcoin strategy.
Additionally, Strategy expanded its Digital Credit Securities Repurchase Program from $2 billion to $3 billion, increasing its flexibility to buy back outstanding securities.
Meanwhile, its reported USD duration of 3.4 years reflects the estimated interest-rate sensitivity of its dollar-denominated financial obligations.
Why is Schiff not happy?
On the other hand, STRC’s BTC Credit stands at 53 basis points (0.53%) under assumptions of 10% annual Bitcoin returns, 40% Bitcoin volatility, and a BTC price of $81,468.
However, this is a model-dependent metric and not a guaranteed return. But what these numbers are suggesting is that, Strategy is balancing capital management and financial flexibility with continued Bitcoin accumulation.
Yet despite a well-planned playbook for Bitcoin, Peter Schiff questioned this approach and questioned Michael Saylor when he said,
If STRC was such a good product, why are you having to keep buying it back? Also, how do you plan on paying the yield on STRC after you spend all the cash you raised selling it buying it back? Plus, you are also burning cash buying more Bitcoin.
Strategy’s market footprint
Notably, Strategy’s Bitcoin holdings reached 848,517 BTC, worth $69.54 billion. Meanwhile, the STRC stock price was trading at $98.62 at press time, up by 0.92% in the past trading session.
Whereas, MSTR was trading at $136.02 at the time of reporting after a drop of 0.59% during the same period.
At the same time, Bitcoin itself was trading at $82,025.94 at press time. Now, while Strategy was making headlines, Strive, the fourth-largest Bitcoin DAT, bought 4x more Bitcoin than Strategy last week, adding $1,223 BTC to its holdings.
This indicates that other Bitcoin DATs are joining the trail with even greater vigor, so Strategy is not the only one vying for more Bitcoin.
Final Summary
- Strategy’s Bitcoin holdings reached 848,517 BTC, worth $69.54 billion.
- However, MSTR’s stock price trading at $136.02 after a drop of 0.59% suggests concerns.
Be the first to comment