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Michael Saylor’s Strategy has expanded its Bitcoin holdings to 499,096 BTC with a $2 billion purchase, despite concerns over its financing model and declining stock performance.
Major Bitcoin Acquisition
Strategy, formerly known as MicroStrategy, has reinforced its position as one of the largest Bitcoin holders globally with its latest acquisition. The company successfully completed a $2 billion stock offering, using the proceeds to purchase 20,356 BTC at an average price of $97,514 per Bitcoin.
The announcement was made by Executive Chairman Michael Saylor, who confirmed that the firm’s total Bitcoin holdings now stand at 499,096 BTC, acquired for approximately $33.1 billion at an average price of $66,357 per Bitcoin.
Strategic Expansion Under the ‘21/21’ Plan
The move aligns with Strategy’s previously stated ‘21/21’ initiative, which aims to raise $42 billion over the next three years to increase Bitcoin reserves. The company’s aggressive accumulation strategy has pushed its holdings to nearly 2.4% of the total Bitcoin supply, far exceeding any of its publicly traded competitors.
Saylor, a well-known Bitcoin advocate, has previously forecasted that Bitcoin could reach as high as $13 million per unit. He once stated,
"Every Bitcoin you don’t buy is gonna cost you $13 million."
His commitment to acquiring more Bitcoin remains firm, with Strategy continuously leveraging stock sales to fund its purchases.
Market Impact and Stock Performance
Despite the substantial investment, Strategy’s stock (MSTR) has struggled, experiencing a 2.37% decline on Monday and extending its monthly losses to 17%, with shares trading at $292.06. The company’s financing method—relying on multibillion-dollar stock sales—has raised concerns among investors, contributing to stock underperformance.
Meanwhile, Bitcoin itself has also seen a dip, declining 0.8% in the last 24 hours to $94,702. This places the asset’s current market price at approximately $3,000 lower than the company’s latest purchase price. Prolonged weakness in Bitcoin’s value could potentially impact Strategy’s overall financial standing.
Saylor’s Vision for Bitcoin and National Policy
Saylor has suggested that the U.S. should consider acquiring up to 20% of Bitcoin’s total supply, arguing that owning between 4 to 6 million BTC could help the country pay off its national debt. While such a move remains speculative, Strategy remains committed to its aggressive Bitcoin accumulation, with Saylor reiterating his long-term confidence in the asset. He previously stated that he would be "buying the top forever," drawing comparisons between Bitcoin and Manhattan real estate in terms of value appreciation.
As Strategy continues its Bitcoin acquisition spree, the firm’s approach raises questions about the long-term sustainability of its financing model and its impact on shareholder confidence.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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