Will the strategy stop buying bitcoins (BTC)? Here’s his new policy

Strategy reduces its problem with action investment in bitcoins (BTC)

On the occasion of publishing their financial results on Thursday, The strategy also introduced its new policy on the common events used to buy Bitcoins (BTC).

With the strategy, with its new logic, it will use the value of its MNAV, which is an indicator that we explained last June, in an article on Bitcoin cash. In short, MNAV allows you to carry out the price of the BTC company in relation to the total number of actions in circulation.

In this context, the strategy now intends to act in this way according to various cases:

• MNAV is less than 2.5x: no share broadcast, except for payment of debt interest or dividend privileged shares;
• Mnav is between 2.5 times and 4x: occasional action emissions for the purchase of bitcoins;
• Mnav is greater than 4x: Active action emissions to finance Bitcoin purchases.

To date Mnav strategy is 1.78xThis therefore indicates a turning point in the question of common actions.

Be aware of these notifications that several observations can be made.

The first hit the company assumes to print new shares to pay interest for debt or dividends.

According to the table below, the strategy is indebted up to $ 12.5 billion and bonds in circulation cost it an average of 0.421 % per year:

Strategic debt

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Given these data, the interests of this debt would be $ 52.63 million each year. We will return to the financial results of the strategy in a specialized article in more detail, but it should be noted that, in terms of turnover, the historical activity of the $ 462.4 billion has brought in the last 4 quarters, which seems very low with regard to the weight of its debt.

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In addition, we have already emphasized a certain lack of congruence between Michael Saylor’s critical remarks against Fiat coins, Fiat Coins, and regularity with which strategy is published by new events.

And for a good reason, from 31 December 2020, the number of common shares of class strategy increased and from 76.23 million to 263.91 million, a multiple of 3.46 in less than 5 years:

Number of strategic actions in circulation

On the contrary, without such action programs, Strategy would not be able to buy so many bitcoinsIf you do not create even more debts.

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Under the current conditions, BTC’s retardation may also be one of the factors for lowering the prices of cryptos in the last 24 hours, although this hypothesis certainly weighs less in investors than the latest Donald Trump leaks.

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Source: Strategy