Michael Saylor's Bitcoin investment strategy shocked many when a software manufacturer disclosed they had purchased 3,081 BTC for approximately $357 million, with an average price of $115,829. Currently, the company holds 632,457 BTC, worth over $71 billion, with an average price of $73,527. Based on this figure, the strategy is still up over 52% despite recent market volatility.
Before this announcement, Saylor stated that Bitcoin was being sold, but everything was fine until Peter Schiff joined the Bitcoin debate. Buying Bitcoin? That might be a good idea, but according to Schiff, the real opportunity won't come until companies like this go bankrupt. For him, the only attractive entry point would be when companies heavily invested in Bitcoin have to liquidate a significant portion of their assets, much like an auction.
This criticism aligns with the growing concerns about how companies manage their "Bitcoin reserves."
Risks of Companies Managing Bitcoin Reserves
This model often involves issuing shares at a significant premium, pouring money into Bitcoin, and tracking price increases through a feedback loop. It works well when the premium is favorable, but once it starts to decline, the capital flow will stop, and the setup process begins to resemble a margin trade with no room for error.
Currently, the strategy remains a major player in this field. The company's market capitalization is $99 billion, with an enterprise value of nearly $113 billion, and the amount of Bitcoin the company holds accounts for nearly three-quarters of that total. However, Schiff's view remains: the best time to buy Bitcoin may not be when Saylor suggests, but rather when the system supporting corporate bonds based on BTC ultimately collapses.
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