“The beat continues” – Saylor points to another Bitcoin buying frenzy

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The strategy’s preferred equity asset, STRC, is trading below its $100 par value – a detail that has quietly caught the attention of investors watching the company’s ability to continue financing its Bitcoin purchases.

Saturn enters as the number of questions increases

The company behind Bitcoin the treasury strategy has recently attracted fresh capital, despite uncertainty. Saturn, an STRC-backed crop supplier, has invested $18 million in STRC, bringing its total investment to $33 million.

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The move came even as critics questioned whether demand for the instrument was forceful enough to sustain Strategy’s aggressive acquisition pace.

STRC offers holders a monthly payout with an annual return of 11.5%, and the funds collected through it go directly to purchasing more Bitcoin.

Still, the stock’s below-par performance has raised questions. Account tracking PAGE activity posted online over the weekend, estimating that roughly zero Bitcoins were purchased last week. “What will Monday’s 8-K confirm?” – asked the post.

Perhaps the answer to this question is already in the works.

Saylor publishes “Orange Dots” – again

On Sunday, April 26, Michael Saylor posted a basic message on X: “The beat continues.” Attached is Strategy’s so-called “orange dots” chart, a visual record of every Bitcoin purchase the company has made. Given past trends, the post is widely read as a signal that another acquisition announcement is imminent.

Strategy currently holds over 815,000 Bitcoins. Last Monday, the company added a $2.54 billion purchase to that total, solidifying its position as the world’s largest corporate holder of Bitcoin. No other publicly traded company comes close.

The title of Saylor’s post – “The Beat Goes On” – reflects the tone he has maintained for years: constant accumulation, public whistleblowing and almost complete indifference to criticism.

The value of BTCUSD is currently $77,884. Chart: TradingView

Schiff calls this a “Ponzi” scheme.

Piotr Schiffone of Bitcoin’s most vocal, long-term critics has recently taken particular focus on STRC. He called it “the most obvious Ponzi that has ever existed” and warned that the math behind the product did not stand up to close scrutiny.

His argument focuses on the relationship between the issuance of STRC and the augment in Bitcoin’s price. According to Schiff, the claim that Bitcoin only needs to grow by 2% per year to cover the 11.5% STRC yield assumes that the company will stop issuing more STRCs.

If issuance increases, Bitcoin’s required appreciation rate increases with it. He also warned Saylor of potential lawsuits, saying the product’s marketing could be considered misleading.

Schiff sees only one way out of the death spiral – canceling the dividend. But he says this move on its own would cause edged losses on STRC exchanges, Strategy shares and Bitcoin prices.

Strategy has not publicly responded to Schiff’s claims. Saylor, for his part, seems unfazed. Orange dots are continuously added to the chart.

Featured image from MetaAI, chart from TradingView

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