Is Strategy Playing Puppet Master with Bitcoin's Price? Here's What Analysts Are Saying

Khac Phu Nguyen

Mon, May 12, 2025, 1:18 PM 1 min read

Strategy (NASDAQ:MSTR) is ramping up its Bitcoin buying spree, snapping up $1.34 cardinal worthy of Bitcoin from May 5 to May 11 a week that saw Bitcoin's terms emergence by 9%. Gustavo Gala, an expert astatine Monness, Crespi, Hardt & Co., flagged the timing of the purchases, suggesting Strategy's enactment could beryllium adding substance to the terms moves. But not everyone's convinced. VanEck's Matthew Sigel argues that Strategy's Bitcoin buys are excessively tiny and sporadic to determination the marketplace consistently, pointing retired they lone correspond astir 8% of play volume.

• Warning! GuruFocus has detected 9 Warning Signs with MSTR.

Strategy's assertive buying is portion of a broader $84 cardinal capital-raising blitz, pursuing a grounds first-quarter nonaccomplishment driven by a caller accounting regularisation that values its Bitcoin holdings astatine marketplace prices. The company, present a de facto Bitcoin proxy, has progressively relied connected convertible offerings and preferred stock income to money its buying binge. Yet, the steadfast isn't the lone subordinate successful the Bitcoin proxy game. With implicit 30 publically listed companies present emulating Strategy's Bitcoin acquisition strategy, contention is heating up successful the firm crypto space.

Cantor Fitzgerald is the latest to leap in, teaming up with Tether Holdings SA and SoftBank Group (SFBQF) to motorboat Twenty One Capital, a caller integer plus task aiming to go a next-gen Bitcoin axenic play. Positioned arsenic a Bitcoin-focused fund, the task plans to rise superior for integer plus investments, echoing Strategy's playbook portion perchance mounting the signifier for further Bitcoin-linked issuance. But arsenic Gala notes, the marketplace whitethorn soon commencement questioning however overmuch Bitcoin-backed indebtedness and equity is sustainable.

This nonfiction archetypal appeared connected GuruFocus.