#SaylorBTCPurchase

Michael Saylor, through his company MicroStrategy (now rebranded as "Strategy"), has become one of the most prominent corporate holders of Bitcoin. His strategy for accumulating Bitcoin has been aggressive and consistent, transforming the business intelligence software company into what he refers to as a "Bitcoin Treasury Company."

Here's a breakdown of his Bitcoin purchases and strategy:

When did Michael Saylor start buying Bitcoin for MicroStrategy?

MicroStrategy made its first significant Bitcoin purchase in August 2020, investing $250 million. Since then, the company has consistently added to its Bitcoin holdings.

MicroStrategy's (Strategy's) Bitcoin Investment Strategy:

Saylor's approach, often dubbed the "Bitcoin flywheel," involves using various financial instruments to acquire more Bitcoin:

* Cash Flow: Initially, MicroStrategy used its available cash to buy Bitcoin.

* Debt Offerings: A key component of their strategy is issuing convertible notes (a type of low-interest debt that can be converted into company shares). This allows them to raise substantial capital to buy Bitcoin without immediately diluting existing shareholders.

* Stock Sales: Strategy also issues new shares (at-the-market offerings) to raise funds for Bitcoin purchases. Saylor argues that due to the company's significant premium to its underlying asset value, issuing new equity to buy Bitcoin can actually increase Bitcoin-per-share, creating a "Bitcoin yield."

* "Stacking and Holding Forever": The core principle is to acquire and hold Bitcoin for the long term, viewing it as a superior treasury reserve asset to traditional fiat currencies. They are not trading Bitcoin; they are accumulating it.

This strategy has been successful in bull markets, allowing Strategy's stock (MSTR) to often outperform Bitcoin itself due to the embedded leverage. However, it also introduces significant risk, as the company is highly leveraged to the price of Bitcoin.

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