Massive New Bitcoin Purchase by Strategy Valued at Over $1.3 Billion: Key Points
Here's a Fresh Take:
Michael Saylor, the Bitcoin brains behind Strategy Inc., just announced a substantial investment yesterday, pushing the company's worth back into the billions. This time, Strategy spent a whopping $1.34 billion to grab 13,390 BTC at an average price close to $100k. That means they snatched these digital coins late last week when Bitcoin was still flirting with five-digit numbers.
previously, Strategy’s Bitcoin shopping spree was a tad more modest, shelling out $180 million for 1,895 BTC. But now, they’re back in the billion-dollar ballgame, bringing their total Bitcoin hoard to an impressive 568,840 units.
Accumulated at an average price of $69,283 per bitcoin, Strategy's crypto stash is now valued at a staggering $59+ billion, equating to an unrealized profit of around $20 billion.
While Saylor and company are hell-bent on gobbling up BTC in mass quantities without the slightest intention to sell, let's dive into why these purchases have turned Bitcoin into a deflationary asset.
In essence, MicroStrategy sees Bitcoin as a superior store of value and a long-term strategic asset. Instead of short-term trading, the company has been steadily increasing its Bitcoin holdings since late 2024, demonstrating an unwavering determination to amass Bitcoin rather than other assets.
Between capital raising efforts and the sale of shares, MicroStrategy managed to finance these purchases, reflecting a shrewd capital allocation strategy geared toward Bitcoin. The company has even set its sights on boosting its Bitcoin yield, increasing its target from 15% to 25%, and its profit target from $10 billion to $15 billion.
By purchasing and holding large quantities of Bitcoin, MicroStrategy effectively removes a significant portion of Bitcoin from active circulation. This reduction in liquid supply contributes to Bitcoin's scarcity and supports its deflationary nature. With a capped supply of 21 million coins, large corporate holders like MicroStrategy help preserve Bitcoin’s scarcity, pushing up its value.
In addition, MicroStrategy’s aggressive acquisition strategy sends a powerful message to the market, empowering investors to view Bitcoin as a scarce and valuable asset. This increased demand, coupled with reduced supply from large holders, supports price stability and potential upward pressure, reinforcing the deflationary narrative of Bitcoin.
Clearly, MicroStrategy's Bitcoin strategy is more than just a passing fancy. By aligning its corporate strategy with Bitcoin’s design as a deflationary asset, MicroStrategy bolsters Bitcoin’s position as “digital gold” and a hedge against inflation, enhancing its intrinsic value. Now that’s some smart money management!
MSTR shares have been on an impressive run over the past month, surging by over 33%. It closed on Friday at $416.
- Michael Saylor and Strategy Inc., with their continued investment in Bitcoin, are demonstrating a strong faith in the technology and its potential as a long-term strategic asset in finance, contributing to Bitcoin's status as a deflationary asset.
- As MicroStrategy purchasing large quantities of Bitcoin and holding them removes a significant portion from active circulation, it reinforces Bitcoin's scarcity and supports its deflationary nature, fueling the deflationary narrative of the crypto.
- With their shrewd capital allocation strategy focused on Bitcoin, MicroStrategy is not only enhancing its own profit margin but also playing a crucial role in driving up the value of Bitcoin as a scarce and valuable asset in the realm of technology, finance, and investing.
