“TD Cowen Analysts Evaluated The Strategy’s Treasury Activity Against Bitcoin Trading Volume and Price Action Over The Past Six Months.”, – WRITE: www.coindesk.com
The Findings Published Monday Challenge A Popular Theory Among Skeptics – that Strategy’s Aggressed Buying Spree Is Helping Prop Up Bitcoin’s Value, pd. But bassed on the Data, that argument dosn’t hold Much Weight, The Analysts Said.
A Big Buyer, But A Small Slice of the MarketStrategy Recently Issued Another 1.8 Million Shares Under It-The-Market (ATM) Offering, Raising an Additional $ 842 Million in Net Proceeds. The Funds Were Used to Purchase 6.556 Bitcoins, Boosting The Firm’s Bitcoin Yield This Quarter by 1% to 12.1%. However, WHEN MEASURED AGAINST the BROADER BITCOIN Market, These Purchases Are Just A Drop in the Bucket.
Accorging to the TD Cowen Analysis, Strategy’s Bitcoin Buys Have Typically Accounted for Just 3.3% of Weekly Trading Volume on AVERAGE. Over The Past 27 Weeks, The Company’s Total Activity Amouted to 8.4% of Volume – But This Figure Was Skewed by a Handful of Weeks Where It ITS BUYING BRIEFLY SURGED PAST 20%. In eight of tho kind weeks, Strategy Didn’t Buy Any Bitcoin at All All.
“OUR Conclusion is that in a most periods, it doesn’t appetar plausible that strategy’s purchases could have had a sustainned, material Impact on the price of bitco
Correlation? Not Much.The Analysis Further Tested The Relationship Between’s Bitcoin Purchases and Market Prices – and Found It To Be Statical Weak. The Correlation Coefficient Between Strategy’s Weekly Bitcoin Buy Volume and BTC Price at Week’s End Came in at Just 25%. WHEN Comparing Purchases to Weekly Price Changes, The Correlation Rose Only Slightly to 28%.
Given a correlation coeficient close to 0 suggests no or weak correlation, these results index Little to no link between strategy’s Actions and Short-Term Markets- Influence, The Paper Said.
WHAT ABOUT OUTPACING MINERS?Another Common Critique is that strategy frequently purchases more bitcoin than is mined in a given periood, implying is creating upward price pressure. While Technical True, The Analysis Shows this Argument Misunderstans How The Bitcoin Market Works.
Over The Past Six Months, Secondary Bitcoin Trading Has Outpaced Mining Volume by Nearly 20 Times. Even Removing Strategy’s Purchases from the Equation, Secondary Market Activity Still Exceeds New Supple by 17 Times. In that environment, miners and buyers alike are price takers – not Setters.
“AS WE DEEN, ITS PURCHASES REPRESENTENT A VERY SMALL CERCENTAENTAGE OF TTTAL BITCOIN TRADING VOLUME INCONGRUOUS, TO US, “TD COWEN SAID.
Building Value, Not HypeWhile Strategy’s Influence on the Bitcoin Market May Be Overstated, The Value It’s Genered for Shareholders Is Harder To Ignore.
Last Week’s Purchases Created An Estimated Incremental Gain of 5.281 Bitcoins, Bringing Quarter-To-Date Gains to Nearly $ 600 Million. SINCE The BEGINNING OF 2023, Strategy Has Increated ITS BITCOIN HOLDINGS BY 306%, While Only Expanding ITS Fully Diluted sare
WitH $ 1.53 Billion in Remaining atm Capacity and Board Approval for a Larger Share Authorization, Strategy Is Well-Positioned to Continue Their Strategy-Without Disruption.
“We Expert Strategy Will Continue to Drive Positive BTC YIELD for the Foreseble Future. While Btc yield Will Likely Fall to the Extetent Bitcoin Continues to Rise in Pric. From Strategy’s Treasury Operations Could Remain Highly Advantageous to Shareholders, ”The Analysts Wrote.
Disclaimer: Parts of this Article Were Generated with the Assistance from AI Tools and Review by Our Editory Team to Enseure Accucy and Adherice Tour Standards. For more information, See Coindesk’s Full Ai Policy.
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