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Why Does Strategy Bitcoin Purchases Lack Significant Price Effects?

 

By Reel Coverage Apr 29, 2025 

 

 

Strategy — formerly Microstrategy — announced yet another bitcoin purchase in the sum of 15,333 BTC for $1.42B at an average price of $92,737 on April 28th and has since attracted community skepticism as most investors expected bigger price movements on such large purchases. 

 

Recent purchase brings the company's total bitcoin holding to 553,555 BTC acquired for $37.90 billion at an average price of $68,459 per bitcoin. Said holdings are worth $52.44 billion at the time of writing, revealing a $14.54 billion profit for the company's bitcoin investment. 

 

Strategy’s recent purchase news has been met with lots of questions with most people requesting for a proof of reserve and others asking why the Company's bitcoin purchases never results in major price movements despite the size the trade. 

 

Several X users have pointed out over the last couple of months that Strategy’s bitcoin purchases are likely OTC deals and not direct spot market orders. This conclusion comes as exchanges BTC supply has collapsed over the years and significant purchases, such as Strategy’s 15,333 BTC sweep up would cause a significant price surge due to thin orderbook liquidity. 

 

Alternatively, key opinion leaders have suggested that Strategy’s bitcoin purchases are IOUs printed by Coinbase, making it consistent with similar claims to Bitcoin spot ETFs purchases where inflows are often met with little upside price movements despite the size.

 

Due to the lack of transparency amongst most ETFs and Strategy on their bitcoin holding addresses, the cryptocurrency ecosystem has remained in the dark and lacking of answers on why growing institutional money has yet to create massive price surge across major crypto assets.