Michael Saylor Tweeted Celebrating Bitcoin's Rebound

Michael Saylor, the executive chairman of Strategy, recently signaled that additional Bitcoin purchases are likely following the recent price dip. In a short social media post, Saylor referenced "oranges," a recurring signal indicating potential Bitcoin acquisitions. This pattern has been observed in previous posts, with official announcements typically following by early the next week.

Bitcoin had dipped below $75,000 at one point but has since rebounded to trade near $76,443. This recovery has pushed Strategy's total Bitcoin holdings into a small unrealized profit of approximately 0.40%.

Strategy's Bitcoin strategy has faced significant pressure as the price of BTC has dropped sharply. The company has incurred a $12.6 billion net loss in the fourth quarter of 2025, largely due to the mark-to-market valuation of its Bitcoin holdings.

What Drives Saylor's Bitcoin Strategy?

Saylor has been a vocal advocate of Bitcoin for years and has consistently added to Strategy's holdings, even as the price of BTC has declined. The company now holds over 713,000 Bitcoin, acquired at an average price of $76,052 per coin.

With the recent rebound in BTC prices, Strategy has seen a small profit on its holdings, though the firm remains underwater in terms of its overall investment. The company's Bitcoin stash is valued at approximately $46 billion, but its cost basis remains above the current market price.

How Did the Market React to Saylor's Signal?

Saylor's "orange" signal often triggers market speculation and increased buying pressure. After similar signals in the past, Strategy has made formal announcements of Bitcoin purchases early the following week.

The recent signal has led to speculation that Strategy will continue its aggressive Bitcoin accumulation strategy, despite the recent market downturn. However, the company's ability to raise capital through at-the-market sales has been constrained, limiting the potential size of any new purchases.

The firm's shares have been under pressure, with the common stock falling by over 6% in recent weeks. Strategy's preferred stock, STRC, has also traded below its $100 par value for the entire week, further limiting capital-raising options.

What Are Analysts Watching Next?

Analysts are closely monitoring Strategy's financial position and whether it will be forced to sell any of its Bitcoin holdings. The company has $2.25 billion in cash reserves, which should cover interest and dividend payments for more than two years.

However, with Bitcoin trading below Strategy's average cost basis, pressure is building to reassess the firm's long-term strategy. Some investors and analysts have raised concerns about the sustainability of Strategy's business model, particularly if the price of Bitcoin continues to decline.

Saylor has not ruled out selling Bitcoin but has stated that the company would only consider doing so if its net asset value (NAV) falls below 1. As of the latest report, Strategy's NAV remains at 1.14.

What Is the Broader Market Outlook for Bitcoin?

Despite recent volatility, some market observers believe that Bitcoin could still see a long-term upward trend. Spot Bitcoin ETFs have seen inflows for the first time in five days, indicating that institutional investors may be viewing current prices as attractive.

Technical indicators suggest that Bitcoin may be entering a period of short-term relief, though a confirmed reversal has yet to be seen. The price has recovered from its recent lows but remains well below its October 2025 peak of $126,080.

What Does This Mean for Investors?

Investors are advised to consider the long-term implications of Strategy's Bitcoin strategy. While the company has built a large position in the asset, the recent price decline has significantly reduced its value in comparison to its cost basis.

For now, Strategy appears to be committed to its Bitcoin strategy, with Saylor continuing to signal additional purchases. However, the company's ability to execute this strategy may be limited by capital constraints and broader market conditions.