The recent acquisition of 3,081 BTC by Strategy has once again drawn attention to the investment strategy of Michael Saylor. We will explore the details of this deal and the response from critics.
BTC Purchase by Strategy
The company Strategy purchased 3,081 BTC for approximately $357 million, leading to an increase in its total reserves to 632,457 BTC, worth over $71 billion. The company's average entry price is $73,527.
Peter Schiff's Criticism
Peter Schiff expressed that the real opportunity for buying Bitcoin will not arise until companies like Strategy find themselves in distress. According to Schiff, this would enable a fire sale of their BTC holdings.
Risks of Bitcoin Treasury Companies
The model reliant on Bitcoin treasuries carries risks associated with issuing stock at premium prices and reliance on capital inflows. Given that Strategy's market capitalization currently stands at $99 billion, a significant portion of this capital is based on their Bitcoin holdings.
Michael Saylor's strategies and the examination of risks associated with Bitcoin raise important questions about the future of corporate investment in cryptocurrency. Currently, the company remains a leader in this field, but criticism and risks remain relevant.
