Strategy has made its largest Bitcoin purchase in months, acquiring 10,624 Bitcoin for approximately $962.7 million last week.
Summary
- Strategy Inc. acquired 10,624 Bitcoin for $962.7 million, bringing its total holdings to 660,624 BTC, despite a 60% decline in its stock price over the past six months.
- CEO Michael Saylor remains committed to accumulating Bitcoin long-term, rejecting the sale of assets to fund dividends, and has built a $1.44 billion cash cushion to support the company for nearly two years.
- The company faces increasing competition as major banks like JPMorgan and Morgan Stanley launch Bitcoin-linked products, challenging Strategyโs role as the dominant corporate Bitcoin accumulator.
This move, despite the companyโs stock remaining in a prolonged downtrend, brings its total Bitcoin holdings to 660,624 BTC, worth about $49.35 billion. The company has reported a 24.7% yield on its Bitcoin investments year-to-date.
The purchase comes at a time when the companyโs stock has plummeted nearly 60% over the past six months, from the $400s to the $170s, with no significant bounce in sight. Strategyโs stock faces multiple resistance levels between $195 and $215, preventing any short-term rallies, and investors are increasingly concerned about the companyโs prospects.
Despite the downturn, founder Michael Saylor remains committed to the firmโs โBitcoin maxiโ strategy, rejecting the idea of selling Bitcoin to fund dividends. Instead, the company has built a $1.44 billion cash cushion, enough to cover dividends for nearly two years. Strategy also introduced perpetual preferred shares, which Saylor believes will be a game-changer in the next 12โ24 months.
However, Strategy faces increasing competition. Major banks like JPMorgan and Morgan Stanley are launching Bitcoin-linked products, providing controlled institutional exposure to Bitcoin with capped upside, directly challenging Strategyโs position as the go-to corporate vehicle for Bitcoin exposure. Additionally, short-sellers, including Jim Chanos, have targeted Strategy, while firms like Metaplanet are adopting similar Bitcoin-heavy treasury strategies.
As traditional financial institutions expand into crypto, Strategyโs role as a dominant corporate Bitcoin holder faces growing scrutiny.
