Michael Saylor, founder and executive chairman of Strategy (formerly MicroStrategy Inc.), is once again making headlines with a move that shakes the cryptocurrency market.
Strategy has announced the purchase of 2.46 billion dollars in bitcoin over the course of just one week, marking the third largest investment in bitcoin ever made by the company in terms of dollar value.
Record Bitcoin Accumulation for Strategy Thanks to Michael Saylor
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Between July 28 and August 3, Strategy acquired 21,021 tokens, bringing the total of its holdings to 628,791 bitcoin.
According to the documentation filed with the United States Securities and Exchange Commission, the current value of these holdings exceeds 71 billion dollars.
This data confirms Strategy as the largest corporate holder of bitcoin in the world, a position that no other cryptocurrency company has managed to match.
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The latest purchase occurred at an average price of 117,526 dollars per token, the second-highest price ever paid by the company, just below the average of 118,940 dollars recorded in the previous month.
This choice underscores Saylor’s determination to continue accumulating bitcoin even when the price is near all-time highs.
In the last five years, Saylor has revolutionized the nature of Strategy, transforming it from a corporate software company into a true financial vehicle specialized in the accumulation of bitcoin.
This strategy has given rise to a new industry of public companies that adopt a so-called treasury strategy dedicated to the purchase and holding of cryptovalute.
To support this policy of massive purchases, Saylor has resorted to a combination of common and preferred stock sales and debt.
Strategy offers investors as many as four different types of securities, including the recent issuance of preferred stock called Stretch, launched at the end of July.
This diversification of funding sources has allowed the company to maintain a steady and aggressive purchasing pace.
Quarter Results and Accounting Turnaround
In the second quarter of the year, Strategy recorded an unrealized gain of 14 billion dollars, driven both by the rebound in the price of bitcoin and by a recent accounting change that required the revaluation of bitcoin holdings.
This result has further strengthened the company’s financial position and its ability to continue with the accumulation strategy.
Michael Saylor recently stated that no new common shares will be issued unless the price is at least 2.5 times the company’s net asset value, except to cover interest on debt or preferred dividends.
This promise comes in response to criticism from some analysts, such as Jim Chanos, who have expressed concern about the premium that Strategy’s bitcoin holdings exert on its stock price and the increasing number of security offerings proposed by the company.
The shares of Strategy have recorded a growth of over 3,000% since the first purchase of bitcoin, surpassing both the performance of bitcoin itself and that of major stock indices like the S&P 500 and the Nasdaq 100.
This result demonstrates the effectiveness of Saylor’s strategy and the growing interest of institutional investors towards the digital asset.
The two largest bitcoin purchases by Strategy date back to November of last year, with investments of 5.4 billion dollars and 4.6 billion dollars, respectively.
The recently concluded operation thus ranks third in the list of the most substantial purchases ever made by the company.
A strategy imitated by other public companies
Michael Saylor’s approach and Strategy have set a precedent, inspiring other public companies to follow a treasury strategy focused on purchasing and holding bitcoin.
In a context where the cryptocurrency market continues to evolve and gain legitimacy, Saylor’s choice stands out as one of the most emblematic cases of financial innovation in recent years.
The determination with which Michael Saylor continues to accumulate bitcoin, even near all-time highs, demonstrates an unwavering confidence in the future of the digital asset.
With a sophisticated financial strategy and careful management of capital sources, Strategy has established itself as a leading player in the landscape of public companies investing in cryptocurrencies.
His example could chart the course for many other companies intending to diversify their assets and ride the wave of digital innovation.
