Michael Saylor, the co-founder of Strategy, shared a cryptic post on social media hinting at a possible continuation of Bitcoin purchases as his firm expands its assets in this cryptocurrency.
Strategy's Holdings of Bitcoin
Saylor has been aggressively increasing the Bitcoin holdings in his company, Strategy. Currently, it holds approximately 592,100 BTC, valued at over $60 billion, representing around 2.8% of Bitcoin's total supply. This positions Strategy as the largest corporate Bitcoin holder in the world.
Saylor's Optimism and Predictions
Despite the significant amount of Bitcoin assets, Saylor continues to be optimistic about its long-term value. In a recent discussion, he projected that Bitcoin could reach $21 million per coin within the next 21 years, emphasizing its scarcity-driven nature. However, this optimism has faced criticism, with some analysts suggesting it might mask financial risks for Strategy's shareholders.
Criticism and Financial Risks
Prominent short-seller Jim Chanos has voiced sharp criticism of Saylor's strategy, particularly regarding the use of convertible debt to finance Bitcoin purchases. Saylor maintains that the firm’s liabilities are secure due to their "unsecured", "convertible", and "no-recourse" nature. However, Chanos challenged this claim, suggesting that there could be significant financial exposure for Strategy if Bitcoin's price does not hold or appreciate.
Regardless of when the next Bitcoin purchase might occur, Michael Saylor remains one of Bitcoin's most vocal advocates. However, as his firm’s holdings grow, so does scrutiny over its financial structure and associated risks.
