According to Cointelegraph, Richard Byworth, a partner at Syz Capital and adviser at Jan3, has suggested that Michael Saylor's Strategy could enhance its Bitcoin acquisition strategy by purchasing cash-rich companies and converting their cash reserves into Bitcoin. Byworth believes that Strategy should accelerate its Bitcoin purchases as the supply on exchanges continues to diminish, potentially boosting the company's multiple Net Asset Value (mNAV) and benefiting shareholders.
Byworth discussed this approach during an April 29 podcast, emphasizing that Strategy should consider a more aggressive method of acquiring Bitcoin. He proposed that instead of relying on over-the-counter (OTC) purchases, Strategy should focus on acquiring companies with substantial cash holdings to fund Bitcoin acquisitions. Byworth noted that as Bitcoin reaches a point of "illiquid supply," where availability on exchanges and OTC desks becomes scarce, Strategy should adopt a "super aggressive" buying strategy. This approach could have a significant market impact and drive the price higher.
Currently, Strategy holds 553,555 BTC, valued at approximately $52.48 billion, according to Saylor Tracker. Fidelity Digital Assets reported on April 24 that the Bitcoin supply on exchanges is decreasing due to purchases by public companies, a trend expected to accelerate soon. Byworth argued that Strategy's primary focus should be on its mNAV, as it offers greater benefits to shareholders. He suggested that when Bitcoin supply becomes limited, aggressive buying could ramp up the price and increase Strategy's mNAV, making dilution more accretive.
Byworth also highlighted the potential for Strategy to acquire "zombie companies" in Japan, which hold significant cash reserves. He proposed that Strategy could convert these reserves into Bitcoin, similar to the approach taken by Japanese investment firm Metaplanet. Byworth noted that many companies in Japan have low price-to-cash ratios and could be ideal targets for acquisition. On April 21, Metaplanet increased its Bitcoin holdings to over $400 million following a $28 million purchase.
Bitcoin is currently trading at $94,680, below the psychological $100,000 level, a drop attributed to tariffs imposed by U.S. President Donald Trump. This represents a 13.22% decline from its all-time high of $109,000 reached in January, according to CoinMarketCap data. Byworth's comments come amid ongoing discussions about Bitcoin's market dynamics and potential future price movements. Readers are advised to conduct their own research before making investment decisions, as every trading move involves risk.