Strategy Buys 10,624 Bitcoin, Boosting Holdings to $49.35B Amid Market Slump

Last Week's Strategy Made its Biggest Bitcoin Buy in Ages, scooping up 10,624 BTC for around 962.7 million bucks.

Quick overview

  • Last Week's Strategy made a significant Bitcoin purchase of 10,624 BTC, increasing their total holdings to 660,624 BTC valued at approximately 49.35 billion dollars.
  • Despite a 24.7% return on Bitcoin investments this year, Strategy's stock has plummeted 60% in the last six months, raising concerns among investors.
  • Founder Michael Saylor remains committed to a 'Bitcoin maxi' strategy, emphasizing that they will not sell Bitcoin for dividends and have a cash reserve of 1.44 billion dollars.
  • With increasing competition from banks like JPMorgan and Morgan Stanley entering the Bitcoin market, Strategy's position as a leading corporate player is under pressure.

Last Week’s Strategy Made its Biggest Bitcoin Buy in Ages, scooping up 10,624 BTC for around 962.7 million bucks. This really shows they are serious about their crypto focus, but it also brings their total Bitcoin stash up to 660,624 BTC, valued at a whopping 49.35 billion!

This means Strategy’s Bitcoin investments have already delivered an impressive 24.7% return so far this year, which is good. The fact that they keep buying up more is a clear sign they’re sticking to their guns on their crypto-centric approach.

But, despite this massive purchase, Strategy’s stock has been struggling – it’s actually dropped a staggering 60% in the last six months, from the $400s down to the $170s. Analysts are pointing to a few key resistance levels in the $195-$215 range, which are choking off any chance of a nice rebound. Investors are feeling cautious, given the uncertainty hanging over the company’s future.

What the Founder Has to Say About Bitcoin

Michael Saylor’s been saying all along that Strategy’s going to stick to its “Bitcoin maxi” plan and not sell any of its Bitcoin to fund dividends. And to make sure they haven’t bitten off more than they can chew, he’s also got a nice big cash reserve of 1.44 billion dollars built up – which should keep them good for nearly two years.

Plus, they’ve introduced these new perpetual preferred shares thing – Saylor reckons this could be a total game-changer for their corporate financing strategy in the next year or so. So all in all, Strategy’s really signalling its determination to stay right at the top of the corporate Bitcoin game.

The Heat is On

But now Strategy’s facing a whole lot more competition from the banks – JPMorgan and Morgan Stanley have both just come out with their own Bitcoin-linked products which offer institutional investors a nice controlled dose of the action, with the bonus of capped upside. And that has got to be a worry for Strategy.

  • You’ve also got Jim Chanos, the short-seller, still gunning for the firm.
  • And other companies, like Metaplanet, are starting to follow Strategy’s footsteps with their own Bitcoin-heavy treasuries.
  • And on top of all that, more institutional crypto products are on the way, which could limit Strategy’s influence in the market.

As more traditional banks enter crypto, Strategy’s reputation as the go-to corporate Bitcoin player is under intense scrutiny. And investors will have to weigh the potential rewards of Bitcoin exposure against growing competition and market volatility.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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