#SaylorBTCPurchase ### **Key Points**

1. **Aggressive Bitcoin Accumulation**

- **MicroStrategy** (NASDAQ: MSTR), under Saylor’s leadership, has become the largest **corporate holder of Bitcoin**, with **~214,400 BTC** (as of July 2024).

- Total purchases exceed **$7 billion**, with an **average cost of ~$35,000 per BTC** (significantly below Bitcoin’s all-time highs).

2. **Strategy Rationale**

- Saylor views Bitcoin as a superior **inflation hedge** and "digital property," arguing it outperforms cash, gold, and bonds long-term.

- Goal: Convert MicroStrategy’s treasury into a **Bitcoin development company**, leveraging BTC as its primary reserve asset.

3. **Funding Mechanism**

- Purchases funded via **debt offerings**, **stock sales**, and **cash reserves**. Critics warn about risks of over-leverage in a volatile asset.

- Example: In 2024, MicroStrategy raised $800M via convertible notes to buy more BTC.

4. **Market Impact**

- MicroStrategy’s stock (**MSTR**) often acts as a **Bitcoin proxy** for traditional investors. Its performance is closely tied to BTC price movements.

- Saylor’s public advocacy has fueled institutional interest, contributing to Bitcoin’s mainstream adoption narrative.

5. **Recent Moves (Mid-2024)**

- Continued buying despite BTC price fluctuations, doubling down on the "**HODL**" strategy.

- Unrealized gains: MicroStrategy’s BTC holdings are worth **~$13 billion** (if BTC trades near $60,000), showcasing massive paper profits.

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### **Criticisms & Risks**

- **Volatility Exposure**: A sustained BTC price drop could erode MicroStrategy’s equity and creditworthiness.

- **Regulatory Scrutiny**: Accounting practices (e.g., Bitcoin impairment charges) and leverage tactics draw skepticism.

- **Concentration Risk**: Over 99% of MicroStrategy’s market cap is tied to BTC’s price.