Strategy Unleashes Massive Bitcoin Buy as Price Soars Past $100K
Hey crypto enthusiasts! Get ready for some big news from the corporate Bitcoin world. Strategy, led by Michael Saylor, just made another headline-grabbing move, adding a substantial amount of Bitcoin to its already massive stash. This purchase happened right as the BTC price briefly surged past the significant $100,000 mark last week. It’s a move that continues to define Strategy’s aggressive crypto investment strategy.
Strategy’s Latest Bitcoin Acquisition Detailed
So, what exactly did Strategy do? Between May 5 and May 11, the company acquired 13,390 Bitcoin. This wasn’t a small purchase; it cost them approximately $1.34 billion. The average price paid per coin in this latest batch was around $99,856. This acquisition significantly boosted their total holdings.
Here’s a quick look at the numbers:
- **Latest Purchase:** 13,390 BTC
- **Cost:** ~$1.34 billion
- **Average Price (Latest):** ~$99,856
- **New Total Holdings:** 568,840 BTC
- **Total Acquisition Cost (Overall):** ~$39.4 billion
- **Overall Average Price:** ~$69,287 per BTC
This brings Strategy’s total Bitcoin holdings to an impressive 568,840 BTC. They’ve spent roughly $39.4 billion in total to accumulate this amount, with their overall average purchase price now sitting at $69,287 per coin. The recent buy pushes that average up slightly, as noted by critics.
Achieving Yield Targets and Raising the Bar
Following this latest purchase, Michael Saylor announced that Strategy had achieved its previous 2025 Bitcoin yield target. The company’s BTC yield, a metric comparing its Bitcoin holdings to its assumed diluted shares, reached 15.5%. This surpassed their earlier 2025 goal of 15%, which was set after a substantial 74% yield last year.
However, Strategy isn’t stopping there. In early May, they actually lifted their 2025 yield target even higher, setting a new goal of 25%. This demonstrates continued confidence in their accumulation strategy and the long-term potential of Bitcoin.
Criticism and Skepticism: A Contrasting View
Not everyone is cheering for Strategy’s aggressive approach. Long-time Bitcoin critic Peter Schiff weighed in on Saylor’s announcement. Schiff predicted potential negative outcomes, particularly concerning Strategy’s rising average cost per Bitcoin.
Schiff commented on X, suggesting that Strategy’s next purchase would likely push their average cost above $70,000. He warned that a future price drop could push the market price below this average cost, leading to significant losses, especially given the amount of money Strategy has borrowed to fund its purchases. This highlights a key point of debate surrounding their crypto investment model.
Schiff’s criticism comes shortly after Strategy revealed plans to raise substantial capital through equity and fixed-income offerings specifically to buy more Bitcoin. While Schiff’s Bitcoin predictions have often been inaccurate, his points about debt financing and average cost resonate with some observers. It’s also been reported that some major crypto firms, like Coinbase, have considered but ultimately decided against adopting a similar aggressive accumulation strategy.
Why Does Strategy Pursue This Investment Strategy?
Strategy’s core strategy revolves around acquiring Bitcoin as a primary treasury reserve asset. They view Bitcoin as a superior store of value and a hedge against inflation compared to traditional assets. They use various financing methods, including issuing debt and equity, to fund these large purchases, aiming to create value for their shareholders through Bitcoin exposure.
Conclusion: Strategy’s Bold Path Continues
Strategy’s recent purchase of 13,390 Bitcoin for $1.34 billion is another testament to its unwavering commitment to its crypto investment strategy. Happening as the BTC price briefly touched $100,000, this move pushed their total holdings past half a million BTC and allowed them to hit their previous yield target ahead of schedule. While figures like Michael Saylor remain bullish and raise future targets, critics like Peter Schiff voice concerns about the increasing average cost and financing risks. Strategy’s bold path continues to be a major story in the intersection of corporate finance and the cryptocurrency market, constantly sparking debate and attention.
