- Strategy anticipates another Bitcoin buy following Michael Saylor’s indication on X.
- The company has acquired 582,000 BTC, using a dollar-cost averaging investment strategy.
- MSTR holders express concerns about stock dilution and Bitcoin market risks.
Strategy, formerly MicroStrategy, is set to add more Bitcoins to its portfolio. The company’s founder, Michael Saylor, recently posted on X, leading to speculation of a newly acquired Bitcoin. It is the tenth week in a row that Saylor has tested the marketplace with an announcement that he is interested in acquiring shares, a pattern that has consistently continued before he officially announces the purchase.
Currently, Strategy owns 582,000 BTC, worth an estimated 61 billion generated on prevailing markets. The firm has been deploying a dollar-averaging (DCA) strategy of acquiring Bitcoin at regular intervals at different price points. Strategy has gained 226,000 BTC in four years, the rest obtained by regular weekly purchases of 335,000 BTC.
A recent post by Saylor implies that the company will carry out a major acquisition, but it is of no imminent impact whether it will drive its holdings over 600,000 BTC. Strategy purchased 1,045 BTC last week at about $110 million and is currently acquiring Bitcoin, which would see it surpass its previous record of 12 straight weeks of Bitcoin purchases earlier in the year.
Institutional Bitcoin Investment: Boost or Risk?
Although Strategy has generated a lot of buzz over its Bitcoin accumulation strategy, it is also raising red flags among MSTR shareholders. Due to the aggressive strategy of buying Bitcoin through Strategy, critics fear the dilution of stock and the possibility of market collapse. Such continued tide has had its fair share of risks as several insiders have unloaded their shares in MSTR. Recently, Carl Rickertsen, Strategy director, sold all his positions, which caused further concern.
Some critics, such as investor Peter Schiff, have cautioned against the risks of such an immense exposure to Bitcoin. Schiff thinks that the high-risk strategy introduced by the company may put MSTR in a very dangerous position if the price of Bitcoin decreases. The performance of Strategy, however, is resilient. MSTR has surpassed giant corporations such as Tesla, Apple and Amazon, and it is now questionable as to whether this wager by the company on Bitcoin will eventually be fruitful.
Market Outlook for Bitcoin and Strategy
As of the time of this writing, the price of Bitcoin is near $105,049, having a market capitalization of 2.08 trillion dollars. The market is showing soft price activity as Bitcoin trades in a tight range of between $104,412 and 106,032. This stability represents uncertainty because investors are unable to make significant decisions since Bitcoin reaches key technical parameters.
Despite the recent perceived Bitcoin market crash, Strategy has gone into a buying frenzy, aided by its listing on the Nasdaq market. Its STRD preferred stock gives the company more funds to proceed with its Bitcoin hoarding activities. Strategy has already raised more than 3 billion through different stock offerings to fund its BTC acquisitions and further strengthen its status as one of the largest institutional holders of BTC.
