Latest battle report: $2 billion 'bottom fishing' for Bitcoin in a single month.
'Bitcoin price drop? That's exactly the time to buy.'
Strategy, led by Michael Saylor (formerly MicroStrategy), once again verifies this saying—between March 24 and 30, the company purchased 22,048 Bitcoins for $1.92 billion, with an average cost as high as $86,969 per coin, far exceeding the market price during the same period.
As of March 31, Strategy's total Bitcoin holdings reached 528,185 BTC, with a total value of $35.63 billion. Despite the Bitcoin price dropping by 1.32% to $82,060 after the purchase, the company still achieved an 11% annualized return thanks to early low-cost holdings (average cost of $67,458).
Key data overview (bold is key).
Holding size: 528,185 BTC (accounting for 2.5% of total circulation).
Latest average purchase price: $86,969.
Total holding cost: approximately $7.23 billion.
Unrealized gains: over $28 billion (based on current prices).
The 'Saylor strategy' behind the crazy accumulation.
1. Buying rhythm on the timeline.
Since Strategy first bought Bitcoin in August 2020, it has completed 24 public increases, with 6 purchases in the first quarter of 2024 alone. 'Buying the dip' is its core logic:
During the 64% crash of Bitcoin in 2022, Strategy increased its holdings by 82,000 BTC against the trend.
In 2023, as the market rebounded, the speed of increase in holdings rose by 40% year-on-year.
In March 2024, the amount of funds invested in a single month reached a historical high.
2. The 'dual circulation model' of capital operations.
The source of funds for Strategy shows a **'equity financing + Bitcoin collateralized loans'** dual-drive model:
Equity financing: The latest plan to issue Class A preferred stock to raise $21 billion, with some funds explicitly earmarked for Bitcoin purchases.
Collateralized loans: In 2022, obtained a $205 million loan collateralized by Bitcoin, creating a precedent for listed company financing.
'This is essentially a leverage game,' Wall Street analyst Tom Lee points out, 'By collateralizing Bitcoin for cash flow and then using that cash flow to buy more Bitcoin, a self-circulation is formed.'
3. Market controversy: High risk or great opportunity?
Opponents believe that Strategy's aggressive strategy has three major hidden dangers:
Liquidity risk: Holdings account for 95% of the company's total assets, and price fluctuations directly affect stock prices.
Financing costs: The preferred stock dividend rate is as high as 6%, far exceeding government bond yields.
Regulatory uncertainty: The U.S. SEC has not yet approved a Bitcoin spot ETF, and policy direction may change suddenly.
But Saylor strongly responded during the earnings call: 'Bitcoin is the ultimate inflation hedge asset; looking back in ten years, today's volatility is just a small ripple in the river of history.'
The turning point of the 'institutionalization' of the crypto market.
Strategy's holding size has exceeded El Salvador's national reserves (2,546 BTC), becoming the world's largest institutional holder of Bitcoin. Its operating model is rewriting the traditional capital entry rules.
Comparison of institutional entry paths.
Typical representative investment methods and holding sizes (BTC) of institutions: Listed Company Strategy: Direct purchase 528,185 National Sovereign Fund: El Salvador fiat currency reserves 2,546 Traditional Asset Management Institution: BlackRock Bitcoin ETF 273,140 Crypto Native Fund: Grayscale Trust Fund 287,455
Data interpretation: Listed companies are surpassing traditional financial institutions in crypto asset allocation through more flexible operations.
In-depth analysis: Strategic intentions behind the $21 billion financing plan.
According to SEC disclosure documents, Strategy plans to raise $21 billion by issuing preferred stock. The layout behind this astronomical figure may include:
Three-tier strategic objectives.
Scale effect: If all were used for purchasing coins, it could increase holdings by about 250,000 BTC at current prices, bringing total holdings to over 750,000 (accounting for 3.6% of circulation).
Pricing power competition: Once the holding proportion exceeds 3%, it may substantially affect market liquidity.
Ecological closed-loop construction: The development of Bitcoin staking, lending, and other derivative services is not ruled out.
Morgan Stanley's calculations show: If Bitcoin rises to $100,000, the value of Strategy's holdings will cover all its preferred stock debt principal and interest. This is essentially a capital game of exchanging time for space.
Ultimate question: Is Bitcoin digital gold or a speculative bubble?
Strategy's crazy bet has pushed the cognitive conflict between traditional capital markets and the crypto world to a climax:
Conflicting viewpoints.
Supporters.
Former Federal Reserve Governor Kevin Warsh: 'Bitcoin is replacing gold as a safe haven, especially for younger investors.'
Goldman Sachs report: For every 1% increase in Bitcoin holdings by listed companies, the annualized volatility of Bitcoin decreases by 0.8%.
Skeptics.
Nobel Laureate Paul Krugman: 'Assets without intrinsic value will eventually go to zero; it's just a matter of time.'
Bridgewater's Dalio: 'The government cannot allow decentralized currencies to threaten the fiat currency system.'
In conclusion: An experiment without an endpoint.
Every update of Strategy's holding data challenges the cognitive boundaries of the traditional financial system. When a NASDAQ-listed company allocates 95% of its assets to Bitcoin, it has transcended mere investment behavior and evolved into a disruptive experiment on the monetary system and value storage methods.
Key observation points for the next three years:
Will Bitcoin break through the psychological barrier of $100,000?
Evolution of the U.S. SEC's regulatory framework for cryptocurrencies.
Will listed companies holding cryptocurrencies trigger a chain reaction?
As Michael Saylor stated in his pinned tweet: 'Either Bitcoin rises to $1 million, or it goes to zero; there is no middle ground.' The outcome of this century's wager may redefine the wealth distribution rules of the 21st century.