Michael Saylor’s Strategy adds $255M in Bitcoin – Why markets turn cautious

Michael Saylor's Strategy has reignited the Bitcoin [BTC] buying frenzy once again. On the 27th of April, the largest Bitcoin treasury company added 3,273 BTC worth $255.0 million at $77,906 per Bitcoin.  The recent purchase has helped Strategy achieve a BTC yield of 9.6% so far this year. This indicates a 9.6% increase in the amount of Bitcoin supporting each share since the start of the year. Meanwhile, the price of Bitcoin at the time of writing was $76,451.03. So, given the new average buying price, Strategy was at a paper loss of $4.76 million. Having said that, the average price of Bitcoin since 2020 has been $75,537. Strategy's Bitcoin stash   In fact, Strategy’s MSTR holdings have reached a record 818,334 BTC, valued at $61.81 billion, according to BitcoinTreasuries.NET.  Notably, the new acquisition came after Saylor made the "Orange Dot" tease on the 26th of April. Mixed community reactions However, this move drew criticism from Peter Schiff, who stated,  Schiff argues that Strategy’s buying alone has not pushed Bitcoin's price enough to justify the $1 million prediction.  However, many stood in defense of Strategy as Adam Livingston took to X and underlined that Strategy’s debt risk is overstated.  He said,  Everyone keeps staring at Strategy’s debt line like it’s a corporate guillotine. Livingston argues that much of Strategy’s debt is convertible rather than traditional, making it less burdensome. He considers the debt manageable since it represents only about 10.5% of enterprise value. However, this depends on both Bitcoin’s price and MSTR stock continuing to rise.  Echoing similar sentiments, another X account with the username 'Plan C' added,  Strategy will hit a $1 trillion market cap in 5 years and a $2 to $2.5 trillion market cap in 7-9 years, assuming both the Saylor Curve and Bitcoin Power Curve hold. Various alarming market signals This move came as MSTR's stock was trading at $169.20, down 1.06% over the previous day but up more than 11% so far this year. On the other hand, the Spot Bitcoin ETF, which was on an inflow streak, recorded outflows worth $263.2 million on the 27th of April. On the 27th of April, CryptoQuant’s Bitcoin Exchange NetFlow chart signaled distribution risk as a large amount of Bitcoin moved to exchanges.  As a result, while Strategy remains one of Bitcoin’s most reliable bulls, short‑term signals point to caution.  Final Summary Amidst weak market dynamics, Michael Saylor's Strategy adds more Bitcoin, bringing the total holding to 818,334 BTC. Peter Schiff, however, believes that if MSTR reaches 5% of the total Bitcoin supply, BTC's price will drop to as low as $60,000.