Despite a hesitant market, Strategy continues its aggressive Bitcoin accumulation. Michael Saylor's company announced the purchase of additional 7,633 BTC for a total amount of $ 740 million. With this new acquisition, Strategy is strengthening its position as the largest BTC holder, bringing its reservations to 478,740 units.
7,600 more bitcoins in the strategy pockets
The idea of a Bitcoin Strategic Reserve for the United States, inspired by the Salvadoral model, has fueled debates in the cryptocurrency community for almost a year. Although attractive, it remains for the moment a simple campaign promise by Donald Trump. Only David Sacks' team, named “Crypto Tsar” by the new government, has started to seriously study the question.
Since 2020, Microstrategy, recently renamed Strategy, has also been distinguished by the creation of a BTC reserve. To continue this approach, the company led by Michael Saylor continues fundraising, entirely dedicated to the purchase of ever more bitcoin.
💡 How to buy Strategy actions?
Yesterday, Saylor announced that Strategy had made a new BTC purchase.
Announcement of the new purchase made by Strategy
Strategy therefore bought 7,633 additional bitcoins, acquired at an average price of 97,250 dollars per unitStrategy now holds 478,740 BTC, or more than $ 47 billion in value.
In total, the company has a performance of around 50 %, representing a profit of more than $ 16 billion.
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Would Strategy be becoming “Too Big to Fail”?
The action of Strategy recently joined the prestigious Nasdaq 100, the index bringing together the 100 most capitalized technological companies in the United States market.
Already present in the portfolios of many investors and institutions, including the Swiss and Norwegian central banks, His entry into the Nasdaq 100 gives him an even wider exhibition. Indeed, this index feeds one of the most popular ETFs in the world, thus distributing part of its capital in investor portfolios around the world.
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Even before that, the MSTR action offered traditional investors a way to expose themselves to the price of the BTC without having to hold it directly. With the entry of Strategy into the Nasdaq 100 and the launch of the Bitcoin Spot ETF in January 2024, the BTC is increasingly won in the financial markets.
However, this institutionalization presents significant risks for the future of Bitcoin. The massive accumulation of BTC by strategy, funded by debt, Exhibits it to a risk of liquidation which could lead to bankruptcy. Worse, a forced sale of its more than 470,000 BTCs would have a devastating impact On the price of Bitcoin, at least in the short term.
For their part, the ETF Bitcoin Spot concentrate a large part of the BTC in the hands of transmitters, like Blackrock and Fidelity, as well as depositaries such as Coinbase. This centralization creates a systemic risk in the event of theft or hacking.
In addition, the control exercised by these few entities could give them a considerable influence on the neutrality of Bitcoin, in particular in the event of Hard Fork, where they could legitimize a chain to the detriment of another.
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Source: Strategy
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Investments in cryptocurrencies are risky. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital
First attracted by the bait of gain, I am now trapped Deep the Rabbit Hole. Without a way out, I just have to share my knowledge and transmit the passion I have for Bitcoin. I am also the creator of Adopt A Block, an educational site dedicated to Bitcoin.
Marius Farashi Tasooji
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