Saylor Signals More Bitcoin Buys Despite BTC Crash to $78K

With bitcoin crashing to $78,000, most investors are running for the exits. Michael Saylor is doing the opposite. The MicroStrategy Executive Chairman dropped his signature "More Orange" tweet on Sunday morning, signaling yet another bitcoin buying spree.

The Orange Code

For months, Saylor's weekend "orange" references have become Wall Street's most reliable bitcoin buying indicator. The pattern is almost ritualistic: cryptic orange-themed tweet on Sunday, followed by formal purchase announcement on Monday.

This time feels different though. MicroStrategy's common stock tumbled 6% this week, closing below $150 per share. The company's preferred stock STRC spent the entire week trading below its $100 par value—a red flag that's limiting the company's capital-raising firepower.

The Funding Squeeze

MicroStrategy's bitcoin accumulation strategy has always depended on one thing: the ability to issue new shares when bitcoin prices drop. It's a clever arbitrage play—sell overvalued stock to buy undervalued bitcoin.

But that playbook hits a wall when your own shares start declining. The company's at-the-market (ATM) programs, which allow it to issue shares continuously, become less effective when stock prices fall. For the preferred stock program, trading below par value completely shuts down the funding spigot.

The company has tried to juice its preferred shares by raising dividend rates, but investors aren't biting. They're starting to question whether MicroStrategy is a software company that happens to own bitcoin, or a bitcoin investment vehicle masquerading as a tech stock.

The 712,647 BTC Question

MicroStrategy now holds approximately 712,647 BTC after acquiring roughly 40,000 BTC since the start of the year. That's the largest publicly-traded bitcoin treasury in the world—and potentially the most concentrated bet on a single asset by any major corporation.

For shareholders, this creates a peculiar situation. They're essentially paying a premium to own bitcoin through a corporate wrapper, when they could buy bitcoin ETFs directly. The only justification is if they believe Saylor's aggressive leverage strategy will amplify returns.

But leverage works both ways. As bitcoin's recent slide demonstrates, concentrated bets can create concentrated pain.

Market Reality Check

The crypto market's weekend selloff wasn't just another dip—it reflected broader concerns about regulatory crackdowns and institutional appetite. While retail investors panic-sold, Saylor doubled down with his orange emoji.

This divergence highlights a fundamental question about conviction versus capital. Saylor's belief in bitcoin remains unshakeable, but belief alone doesn't fund purchases. At some point, even the most devoted bitcoin maximalist needs cash.