- MicroStrategy employs TWAP, a discreet algorithmic strategy, to purchase Bitcoin without impacting market price or attracting attention.
- The firm acquired 186,780 BTC in two months, consolidating its position as a major institutional Bitcoin holder.
- Michael Saylor emphasized the firm’s treasury-focused approach, creating shareholder value by issuing capital to purchase Bitcoin.
Michael Saylor, Executive Chairman of MicroStrategy, has disclosed the company’s approach to acquiring large amounts of Bitcoin while maintaining market stability.
Speaking in an interview, Saylor confirmed that the company leverages regulated U.S.-based exchanges and employs the TWAP algorithm, a method designed to execute large orders discreetly.
The TWAP algorithm, or Time Weighted Average Price, splits a large order into smaller transactions executed incrementally over a specific period. This strategy ensures that the purchase price aligns with the market’s average price during that time frame.
According to Saylor, the primary objective is to avoid noticeable movements in Bitcoin’s price or MicroStrategy’s stock value.
“Our goal is to participate in the market without causing upward or downward volatility or drawing attention,” he emphasized.
As we enter the first year of institutional Bitcoin adoption, I review $MSTR capital markets strategy, shareholder value creation via operations, investments, and acquisitions, Nasdaq 100 and possible SP 500 inclusion, $MSFT financial strategy, more. pic.twitter.com/13TYH3pbVb
— Michael Saylor⚡️ (@saylor) December 18, 2024
ETHNews previously explored MicroStrategy’s Bitcoin acquisitions, highlighting their precision in executing transactions without disrupting market.
Massive Bitcoin Accumulation
Between November and December, MicroStrategy conducted six large-scale purchases, amassing approximately 186,780 BTC during this period. This activity brings their total holdings to 439,000 BTC, cementing their position as one of the largest institutional holders of Bitcoin. The company’s actions align with a broader treasury strategy that prioritizes Bitcoin as a long-term store of value.
ETHNews has consistently reported on MicroStrategy’s investment practices, noting how these acquisitions align with their financial strategy.
A Treasury-First Approach
Although MicroStrategy continues to operate in enterprise software development, Saylor emphasized that the company now views itself primarily as a Bitcoin treasury business.
“We issue shares and debt to acquire Bitcoin, a process that has generated approximately $14.4 billion in shareholder value this year,” Saylor stated, valuing Bitcoin at $105,000 per coin.
ETHNews has also analyzed MicroStrategy’s dual focus on software and Bitcoin, suggesting that their innovative approach could inspire other corporations to adopt similar strategies.
MicroStrategy’s methods illustrate how institutional players can integrate Bitcoin into their financial models, paving the way for broader adoption while maintaining market integrity.
