Why is Bitcoin not rising in price despite investments from Strategy?
Strategy’s Shirish Jajodia, who manages a stock of digital assets, explained why his firm’s purchase of bitcoins does not affect the cryptocurrency’s rate.
In August, Strategy and many other companies continued to buy BTC, but the coin’s price fell by 3,22%, and the market clearly entered a bearish trend. Therefore, members of the crypto community are again started arguing about what bitcoins organizations are buying — real ones or paper ones that are only listed on the virtual balance of custody service providers. Jajodia decided to put an end to these speculations and said what explains the lack of visible effect from investing in cryptocurrency.
We buy Bitcoins in such a way that their price does not change. We make transactions as if we were part of the market liquidity, so the BTC rate does not move anywhere. We buy Bitcoins 24 hours a day. Almost every day, every hour, every second, — Shirish said.
Shirish Jajodia
According to Jajodia, Strategy employees are buying up digital assets on the over-the-counter market instead of purchasing them on trading platforms and thus reducing the supply, which would inevitably lead to an increase in the price of the coin.
Most likely, the company’s employees make many small transactions, and at some point, the head of the company, Michael Saylor, announces that the company has invested several million dollars in cryptocurrency, buying hundreds of coins.
Strategy Bitcoin Purchase Announcement Moments
Using this strategy, Strategy has accumulated 2020 bitcoins worth $629,376 billion at the current exchange rate since September 71,05. Investments in digital assets have generated an unrealized profit of 54% for the organization, meaning the average return on investment in BTC was 10,8% per annum.
