Strategy made its largest Bitcoin purchase in months, purchasing 10,624 Bitcoin last week for approximately $962.7 million.
Summary
- Strategy Inc. acquired 10,624 Bitcoin for $962.7 million, bringing its total holdings to 660,624 BTC, despite a 60% decline in its share price over the past six months.
- CEO Michael Saylor remains committed to long-term Bitcoin accumulation, rejecting asset sales to fund dividends, and has built a $1.44 billion cash buffer to support the company for nearly two years.
- The company is facing increasing competition as major banks like JPMorgan and Morgan Stanley launch Bitcoin-linked products, challenging Strategy’s role as the dominant corporate Bitcoin accumulator.
The move, despite the company’s shares remaining in a prolonged downtrend, brings its total Bitcoin holdings to 660,624 BTC, worth approximately $49.35 billion. The company has reported a 24.7% return on its Bitcoin investments to date.
The purchase comes at a time when the company’s shares have plunged nearly 60% in the past six months, from $400 to $170, with no significant recovery in sight. Strategy shares are facing multiple resistance levels between $195 and $215, preventing short-term rallies, and investors are increasingly concerned about the company’s prospects.
Despite the recession, founder Michael Saylor remains committed to the company’s ‘Bitcoin maxi’ strategy, rejecting the idea of selling Bitcoin to fund dividends. Instead, the company has built up a cash cushion of $1.44 billion, enough to cover almost two years of dividends. Strategy also introduced perpetual preferred stock, which Saylor believes will be a game changer in the next 12 to 24 months.
However, strategy is confronted with increasing competition. Major banks such as JPMorgan and Morgan Stanley are launching Bitcoin-linked products, offering controlled institutional exposure to Bitcoin with limited upside, directly challenging Strategy’s position as the go-to corporate vehicle for Bitcoin exposure. Additionally, short sellers including Jim Chanos have focused on Strategy, while companies like Metaplanet are adopting similar Bitcoin-heavy treasury strategies.
As traditional financial institutions expand into crypto, Strategy’s role as the dominant corporate Bitcoin holder has come under increasing scrutiny.
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