Michael Saylor indicates that a "bull market is calling," and Bitcoin has risen to around $84,550; at the same time, Strategy's expenditure on repurchasing preferred stocks has exceeded the amount it spent buying Bitcoin.

• Bitcoin rose by 2.4% within 24 hours, with trading prices approaching the high end of the intraday range.
• Altcoin Sherpa Questions whether Bitcoin can hold its ground after breaking through the resistance level.
• Strategy spent $193.1 million to repurchase STRC, which is nearly 9 times its weekly Bitcoin purchase amount.
• The sale of common shares and cash provided funds for the latest purchase of 267 BTC by Strategy.

Strategy Executive Chairman Michael Saylor released this message on X on October 21st, accompanied by a 20-second video in which a bull dressed in a suit approaches him while he is sleeping. Saylor gave a bullish outlook, but did not provide a target price or date for the next move of Bitcoin.

In another X post, trader Altcoin Sherpa questioned whether the trend of Bitcoin recently breaking through a horizontal resistance line could continue.

“$ BTC is super strong … breakout real ??”

The accompanying chart shows that the price has penetrated through the lower of two marked resistance lines, with an even higher level above it. This post describes this breakthrough as a question mark and does not declare that a trend reversal has been confirmed.

Bitcoin trading approaches the high of the intraday range

CoinGecko shows that Bitcoin is trading at $84,554.27, up 2.4% in 24 hours. Its intraday trading range was from $82,296.14 to $84,719.92, which means that BTC is less than $166 away from the day's high point.

Previously, trader Ardi considered $84,200 to be the level that Bitcoin needed to break through in order to dismantle its short-term bearish structure, crypto.news wrote in a report on October 20 regarding Bitcoin's resistance to rebound. This judgment was made after Bitcoin rebounded from a weekly low near $79,800.

Compared to the updated CoinGecko data, BTC is currently about $354 higher than the threshold set by Ardi. The level used here is from his previous releases, and it does not mean that he has given a new assessment of the trend for Wednesday.

A report on October 20th recorded another set of data for CoinGecko at that time: the price was $82,601.56, with a intraday high of $83,249.46. The updated value on Wednesday was about 2.36% higher than the previous price, although these two sets of data do not correspond to the same daily closing price.

Ardi Previously, it was stated that after the price broke through its threshold, he would consider establishing a long position near the top of the trading range. This condition is related to a series of lower highs for Bitcoin, as mentioned in that day's assessment.

Calculated at $84,554.27, Bitcoin still needs to rise by about 18.3% to reach $100,000. The caption on October 21st did not mention this target, nor did the post with Altcoin Sherpa provide a timeline for reaching a six-figure price.

Strategy purchased 267 units of BTC while repurchasing preferred stocks.

The 8-K filing submitted on October 19 by Strategy shows that the company purchased 267 units of BTC from October 12 to October 18, for a total amount of $22.1 million, at an average price of $82,900 per unit, which includes transaction fees and expenses. The company disclosed that its total holdings of BTC are 848,517 units, with a cumulative purchase cost of $64.02 billion and an average cost of $75,446 per unit.

The document also explains the source of funds used for purchases this week. The sale of common stock provided $22 million, and an additional $100,000 came from cash. During this period, there were no sales for the four preferred stock ATM items listed.

Within the same week, Strategy spent $193.1 million to repurchase STRC. Dividing this expenditure by the amount of Bitcoin purchased, which was $22.1 million, results in a ratio of approximately 8.7 to 1.

The board of directors increased its authorization for the repurchase of digital credit securities from $2 billion to $3 billion, including previous repurchases. The documents show that after this adjustment, there was still $1.16 billion available as of October 18th.

Preferred stock financing has provided funds for the purchase of 135,979 bitcoins.

Analyst Zack Wainwright described a preferred stock financing model in a report on October 20th. The company sells interest-bearing shares and uses the proceeds to continue accumulating Bitcoin, with the economic viability depending on whether the appreciation of the cryptocurrency exceeds the cost of earnings.

Fidelity statistics show that as of October 5th, a total of 135,979 BTC have been purchased through these products. This figure covers the financing channels discussed in the report and does not represent the total Bitcoin holdings of Strategy, nor does it represent the purchase volume during its most recent reporting week.

The report states that between March and May, over 95,000 BTC were purchased through preferred stock issuance financing, raising more than $7 billion. Fidelity compared this channel with the spot Bitcoin exchange trading products, which accumulated 888,185 BTC in the first year after their launch in January 2024.

Report reminder: Preferred stocks targeting Bitcoin are not equivalent to money market funds. Their success depends on the long-term performance of Bitcoin as well as the companies that issue these securities.

Strategy pays a floating dividend of 12% to STRC

On the STRC dashboard, Strategy displays a floating dividend yield of 12% and an effective yield of 12.16%. The stock price shown on the page is $98.71, and the nominal value corresponding to this security is approximately $8.6 billion.

The company's main dashboard also lists $6.714 billion in debt and $13.557 billion in preferred securities. Based on this snapshot, the annual interest and dividends total $1.534 billion, in addition to $4.833 billion in reserves and $447 million in cash.

Calculated based on the disclosed holdings of 848,517 BTC and a price of $84,554.27 for CoinGecko, the value of these holdings is approximately $71.75 billion. With the number of Bitcoins remaining unchanged, for every $1,000 change in price, the total market value of these holdings changes by about $848.5 million. This calculation does not include debt, preferred rights, or cash.

STRC The dashboard indicates that October 31st is the registration date, and November 15th is the dividend distribution date.