Michael Saylor revealed on Feb 17 that Strategy has purchased another 2,486 BTC for roughly $168.4 million, paying an average of $67,710 per coin. The buy comes at a time when Bitcoin remains under pressure, with many investors debating whether the market is entering another long downturn.
With this latest acquisition, Strategy’s cumulative BTC holdings now stand at 717,131 BTC. The company has invested a total of $54.52 billion in accumulating this stash, with an average acquisition price of approximately $76,027 per BTC.
The magnitude of these figures ensures that Strategy remains in the middle of the crypto universe. Very few publicly listed companies have ever invested this much in BTC. Saylor continues to position BTC as a long-term investment rather than a trading instrument, despite prices being below the average acquisition price.
However, not all people think that this is a bold step. Economist and longtime critic of BTC, Peter Schiff, reacted to this move by saying that Saylor has finally averaged down but may be forced to continue doing so if BTC continues to fall.
Also Read: MicroStrategy Holds 712K Bitcoin As Michael Saylor Hints at New Bitcoin Buy
Saylor Calls It Crypto Winter but Predicts a Spring Ahead
In a recent interview on Feb 18, Saylor said that the current market is a crypto winter and that it is the fifth major Bitcoin correction that he has witnessed in the past five years. However, he said that this correction seems less severe than the previous ones.
Saylor emphasized the increased institutional support compared to previous years. He cited the increased participation of banks, the development of digital credit networks, and the increasing acceptance of BTC in the financial system.
He also indicated that political leadership is becoming more supportive of digital assets, which increases his optimism about the continued expansion of Bitcoin adoption.
Although Strategy’s average purchase price is significantly higher than the current price, Saylor brushed aside concerns that the difference poses an immediate risk. He indicated that most of the Bitcoin was purchased through equity financing and not through too much borrowing.
Fortress Balance Sheet and Long-Term Bitcoin Plan
Saylor went on to say that Strategy has raised approximately $55 billion in capital, of which only about $8 billion is debt. This, according to Saylor, is what makes the company so robust even if Bitcoin goes lower.
He likened the position of Strategy to having prime Manhattan real estate and having enough funds to ride out a downturn.
In his opinion, the company has approximately $2.25 billion in cash reserves, in addition to the Bitcoin holdings, providing it with the flexibility to carry out its operations even during prolonged periods of market stress.
Saylor also spoke about the financial products offered by Strategy, including STRC, which is a preferred stock providing an 11% dividend yield in return for Bitcoin holdings.