Strategy, led by Michael Saylor, intends to accumulate bitcoin and aims for 7% of the total supply at 1.47 million BTC. The company currently holds over 3%.
Bitcoin Accumulation Strategy
Following a $2.5 billion IPO, Strategy acquired 21,000 bitcoins. Michael Saylor stated that his company could hold between 3% to 7% of the total bitcoin supply, saying: "We don't want to own everything, we want everyone to have their share."
Financial Model and Risks
Currently, Strategy holds 628,791 BTC, representing over 3% of the 19.9 million bitcoins in circulation. The company's reserves are valued at $72 billion. Even if the bitcoin price drops by 90%, Saylor claims the company will not sell its reserves. To finance its accumulation, Strategy regularly issues debt, allowing continued purchases without needing to sell.
Impact on the Market and Cryptoeconomy
If Strategy reaches its goal of 7%, it would hold more bitcoins than all the world governments combined, potentially altering market dynamics. Some analysts express concerns about the sustainability of such asset concentration in the hands of a private company and the systemic risk it may pose to the cryptoeconomy. This could also impact traditional stock markets during a potential sharp price drop.
Strategy's bitcoin accumulation strategy demonstrates an ambitious approach to digital asset investing. However, such actions raise questions about the impact of concentration on the stability of the crypto market.
