The aim of the strategy is 1.5 million long -term BTC
While every bitcoin becomes more rare, the strategy aims to concentrate an unprecedented part. Michael Saylor, his Co -foundder, speaks of the possibility of holding up to 7 % of the world’s Bitcoin offer or almost 1.5 million BTC. With more than 3 %, the company is no longer satisfied with investing: it creates a financial model focused on strategic accumulation of assets. Trajectory that redefines corporate cash codes at the age of digital currencies.
In short
- Michael Saylor, the Executive President of the Strategy, says the company could hold up to 7 % of the total bitcoin offer.
- The strategy already has 628 791 BTCs, or more than 3 % of bitcoins currently in circulation, for an estimated value of $ 72 billion.
- Michael Saylor says that even a 90 % drop in prices of bitcoins would not force the company to sell its reserves.
- If 7 %is achieved, the strategy will hold more BTC than all governments of the world together.
Encrypted ambition: Strategy prepares its offensive to 7 %
After obtaining 21,000 Bitcoins after IPO of 2.5 billion, Michael Saylor, Executive President of the Strategy, in an interview with CNBC said that his company could eventually stay among “3 to 7 %” from the overall bid of bitcoins while specifying:
I don’t think we get all the bitcoins (…), we don’t want everything, we want everyone to have their share.
To date, the company has 628 791 BTC, which is more than 3 % of 19.9 million bitcoins currently in circulation. The reserve was estimated at $ 72 billion based on the BTC course at $ 114,692. If the Sylor’s strategy would achieve its goal, it would be 1.47 million BTC, worth approximately $ 169 billion, an unprecedented concentration for the company.
This massive accumulation project is integrated into the approach launched in August 2020, when the strategy, then weakened by Covvivs crisis, operated a radical turn by accepting bitcoins as reserve assets. This orientation is based on the structured acquisition mechanism, described in detail by the following numbers:
- 628 791 BTC has currently been detained, making the strategy the world’s first holder in the world;
- Current $ 72 billion award, more than GDP of many countries;
- 2,488 % power for the MSTR event from the first acquisition of BTC in 2020;
- A strategy supported by a regular debt program that allows strategy to continue buying without having to sell its assets;
- 7 % theoretical objective of the total offer, which corresponds to $ 1.47 million, for potential capitalization of $ 169 billion.
This approach, originally perceived as ruthless, radically changed the perception of the strategy in the financial markets. Her actions, although more than 6 % fall below $ 380, remain one of the favorite stock markets of investors who want to indirectly expose Bitcoin.
An extraordinary company and a model of visible limits
During the presentation of the results of the second quarter, Michael Saylor said that even if the price of bitcoins fell by 80 %, the company could exceed this storm without being in a single room.
A courageous statement that reflects absolute confidence in the resistance of her strategy. This extreme posture, assumed by its architect, is largely based on long -term expectations: “We don’t want everything, we want everyone to have their stake”Nument Saylor in the same interview, while maintaining an ambitious goal of 7 %. This communication leaves little space for doubts about the will of the strategy to continue accumulation, regardless of market shocks.
The financial mechanics for this strategy is based on the effect of the lever. The company regularly issues debt, sometimes convertible to finance its BTC purchases. It also plans to raise $ 4.2 billion from this perspective.
If the price of bitcoins continues to proceed, this approach can continue to produce record profits such as 10 billion announced in the second quarter. On the contrary, a brutal market decline could cause cascading effects on traditional stock markets, strategies have now closely correlated at the cost of crypto.
The MSTR event thus became some bitcoin proxy on Nasdaq, with all the risks of volatility and speculation that means. In addition, some analysts, as in Benchmark, have increased their price target to $ 705, while others are afraid of the sustainability of such a long -term model.
This frantic accumulation challenges the impact of an asset concentration to be decentralized. If the strategy really reaches 7 %, the company will hold more BTC than all world governments together. This concentration could change the dynamics of the market, especially in the case of an increased crisis of liquidity or regulation, as evidenced by the vote of the brilliant law in the United States. While some consider this to be a visionary commitment, others emphasize the systemic risk represented by a private enterprise monopolizing such an important part of the global asset.
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A graduate of the Toulouse and the Blockchain Consultant Certification certification certification I have joined Alyrou’s adventure in 2019. I convinced the potential of blockchain to transform many economy sectors, committing to raising awareness and informing the general public about how the ecosysty developed. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.