Strategy holds 531,644 BTC: a bet on growth or playing with fire?
As of April 13, Strategy has accumulated 531,644 BTC — this is 2.52% of the total issuance. A total of $35.92 billion has been spent, with an average purchase price of $67,556.
How are purchases financed?
Through the issuance of low-coupon convertible bonds. Investors can exchange them for shares of Strategy ($MSTR). The money goes directly into Bitcoin.
Why does this work?
The model is effective when BTC rises. The company attracts funds cheaply, and investors believe in growth.
Where is the risk?
A decline in Bitcoin could lead to unrealized losses and undermine interest in the shares. Strategy has already acknowledged a 'paper' loss of nearly $6 billion amid recession fears.
A large bet means large volatility. But those who don’t take risks…
