The biggest corporate holder of Bitcoin (BTC-USD) is getting back into the buying lane. Strategy (MSTR) looks ready to resume its massive crypto purchases after a short break. The theory comes as the company’s STRC preferred stock climbed back above its key $100 price level, allowing the firm to raise new cash to expand its digital vault.
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STRC Funding Creates an Influx of Demand
The way Strategy buys Bitcoin is tied closely to how its preferred stock, STRC, trades. When the stock is at or above its par value of $100, the company can sell new shares to raise money. According to the latest data from STRC.LIVE, the company has already raised enough this week to fund the purchase of at least 1,111 BTC.
At current prices, that is roughly a $76.25 million injection. This is a big change from last week when the stock was trading below $100, which effectively paused the company’s buying power. As of late March, Strategy already held a massive 762,099 BTC, and this new round of buying shows it has no plans to slow down.
Bitcoin Rebounds as the Buying Window Opens
History shows that when Strategy starts buying, the Bitcoin price often follows. Since the buying window reopened on Tuesday, Bitcoin has jumped more than 5%, moving back toward the $69,300 mark.
We saw this same pattern in mid-March. During a week when the company bought over 22,000 BTC, the price of Bitcoin rallied 10%. On the flip side, when the company paused its buying recently, the price slipped about 14%. This suggests that Strategy’s activity is a major spark for the rest of the market.
Technical Signs Point Toward a $80,000 Bitcoin Price
Looking at the price charts, Bitcoin is currently bouncing off a key support level. If this recovery keeps its momentum, fueled by Strategy’s new cash and a potential cooling of global tensions, analysts believe Bitcoin could hit $80,000 this April.
This $80,000 target is a major resistance zone where the price has struggled before. However, if the buying support fades, there is a risk the price could drop back toward the $50,000 range. For now, all eyes are on Michael Saylor’s next move, as the company still has a massive $44.1 billion in total capacity to buy more Bitcoin in the coming months.
Is Strategy a Good Stock to Buy Now?
According to TipRanks, Strategy (formerly known as MicroStrategy) stock has a consensus Strong Buy rating among 12 Wall Street analysts. This rating is based on a unanimous 12 Buy ratings assigned in the past three months. The average 12-month MSTR price target of $284.17 implies 131.2% upside from current levels.
