Amid all the strategy debate, Michael Saylor teased again in a recent X post. Strategy’s Bitcoin has the usual orange dot chart ($BTC) Purchase, Mr. Thaler said.
Given the trend, this could indicate Strategy buying Bitcoin for the 113th time. Since the last update, Strategy has made 112 purchases, increasing its total Bitcoin holdings to 846,842. $BTCits value is $54.3 billion.
According to data from BitcoinTreasuries.NET, since August 11, 2020, there has been only one decline in this period.
For those who don’t know, Strategy sold 32 $BTC Additionally, this caused one of Strategy’s preferred stocks, Stretch (STRC), to drop to $90.
Crypto community raises concerns
But unlike the usual times when the cryptocurrency community gets excited about Saylor’s tweets, this time they are met with criticism.
For example, X user Byzantine General asked how Strategy can continue to accumulate Bitcoin given its current financial limitations.
Because Strategy’s mNAV ratio is currently at or near 1, issuing more MSTR shares will no longer create the premium value on which Thaler’s own capital allocation framework relies.
A similar claim was made by another X user who claimed that Saylor and Strategy are in a vicious cycle and need to continue buying Bitcoin to stabilize the price. This is because if the stock price falls sharply, the company’s highly leveraged position could be in jeopardy.
User X believes that selling enough Bitcoin or MSTR stock to resolve debt and senior obligations is a more sustainable course of action, even if it means abandoning Strategy’s current business model.
Many still support Strategy’s Bitcoin plans
Needless to say, as Nicholas Cole, co-founder of Premium Ghostwriting Academy, says, not everyone resonated with the criticism in the same way.
Additionally, noted Bitcoin expert Adam Livingston added:
As expected, the strategy plans to sell MSTR and buy more Bitcoin and cash. That’s how it should be.
He also expressed optimism about Strategy’s capital allocation strategy, claiming it could raise funds by issuing more MSTR shares and distributing the proceeds to cash reserves and acquiring more Bitcoin.
Livingston argues that even if Bitcoin’s yield per share were temporarily negative, this strategy would still benefit shareholders at the balance sheet level.
He argues that critics who focus on dilution ignore the importance of cash holdings and the ability of preferred securities like STRC to increase Bitcoin yields without increasing the number of common shares if managed correctly.
Despite these mixed feelings, Thaler recently celebrated Strategy’s comeback from the 2022 bear market. All of this happened while Bitcoin was trading at $64,106.25 at the time of writing. It is still below the $65,000 mark it last reached on June 18th.
Final summary
- Many in the crypto community are slamming Strategy’s Bitcoin plans after Saylor posts a new tease.
- However, many in the cryptocurrency community have praised Strategy’s Bitcoin conviction since 2020.
