A report from TD Cowen reveals that despite Strategy's significant bitcoin (BTC) purchases, averaging 3.3% of weekly trading volume, these transactions have little lasting effect on BTC prices. Over six months, analysts found a weak statistical correlation between Strategy's buying activity and price movements, indicating that its purchases are insufficient to materially influence market dynamics. The analysis challenges the view that Strategy's aggressive acquisitions are essential to sustaining bitcoin's value. Furthermore, even though the company has increased its bitcoin holdings by 306% since early 2023, its buying activity accounts for a small portion of overall trading volumes. Additionally, the report highlights that secondary trading far exceeds mining activities, limiting any upward price pressure from Strategy’s purchases. While its impact on the market may be limited, Strategy's strategy has yielded substantial gains for shareholders, demonstrating effective treasury management without disrupting the broader market.

Source 🔗