Michael Saylor, co-founder and Executive Chairman of Strategy (formerly MicroStrategy), has revealed his company's ambitious plan to acquire up to 7% of the total Bitcoin supply. In a recent interview with CNBC, Saylor stated that Strategy may own between 3% to 7% of the total 21 million Bitcoins, but the company doesn't aim to acquire all of it. This potential acquisition would translate to approximately 1.47 million BTC, valued at around $169 billion at the current price.
1️⃣Strategy's Current Bitcoin Holdings
Strategy currently owns over 3% of the 19.9 million Bitcoins in circulation, equivalent to 628,791 BTC. This amount is valued at approximately $72 billion, considering the current price of $114,692 per Bitcoin. The company has been aggressively accumulating Bitcoin since 2020, using various methods to fund its purchases, including :
-Cash Reserves: Utilizing corporate funds to acquire Bitcoins
-Convertible Bonds: Issuing convertible senior notes to raise capital
-High-Yield Bonds and Secured Loans: Taking on debt to fund Bitcoin purchases
-At-the-Market (ATM) Equity Offerings: Selling new shares directly into the open market to raise funds
-Convertible Preferred Shares: Issuing hybrid securities that pay high, fixed dividends to investors
2️⃣Confidence in Bitcoin's Long-Term Value
Saylor's confidence in Bitcoin's long-term value is evident in his statement that even if the price of Bitcoin drops by 80% to 90%, Strategy could still weather the downturn without having to sell its BTC holdings. This confidence is rooted in his belief that Bitcoin is a superior monetary network and a reliable store of value.
3️⃣Impact on the Financial Industry
Saylor's Bitcoin strategy has not only positioned Strategy as a leading player in the crypto space but has also influenced the broader financial industry. His approach has sparked a wave of institutional Bitcoin buying and has helped legitimize Bitcoin as a corporate treasury asset.
4️⃣Key Takeaways
- Strategy's Bitcoin Holdings: Over 628,791 BTC, valued at approximately $72 billion
- Potential Acquisition: Up to 7% of the total Bitcoin supply, equivalent to 1.47 million BTC
- Valuation: Approximately $169 billion at the current price
- Funding Methods: Cash reserves, convertible bonds, high-yield bonds, ATM equity offerings, and convertible preferred shares
As the financial world continues to evolve, Michael Saylor's Bitcoin strategy will likely remain a topic of interest and discussion. Will Strategy's ambitious plan to acquire up to 7% of the total Bitcoin supply pay off, or will it face challenges in the volatile cryptocurrency market? Only time will tell .
DYOR always.
