Bitcoin: Strategy buys at the high… and plans to buy more
Michael Saylor is at it again. The CEO of Strategy has bought another 13,390 bitcoins for $1.34 billion. This boost makes him a top player in the institutional market. Now, his next move is to raise $84 billion to keep buying more. Many financial experts find this plan both interesting and concerning.
In a visual, Saylor is shown in a dark suit, with messy hair and bright eyes. He is leaning into a vault, quickly grabbing bitcoins with both hands.
To sum up:
MicroStrategy has added 13,390 bitcoins to its holdings for $1.34 billion.
The company's total bitcoin stash is now 568,840 coins, worth over $39.4 billion.
MicroStrategy's bitcoin return rate hit 15.5%, surpassing its first goal.
Peter Schiff warns that this heavy debt strategy has risks.
Michael Saylor keeps expanding his bitcoin moves with a new record buy.
According to a filing with the SEC on May 12, MicroStrategy bought the 13,390 bitcoins between May 5 and 11. The average price paid was about $99,856 per bitcoin. Bitcoin was just over the $100,000 mark when the purchase was made.
This purchase raises Strategy's total bitcoin holdings to 568,840 coins, bought at an average price of $69,287 each. The company's investment shows a gain of 15.5%, which was the initial goal for 2025.
Seeing this success, Saylor increased his target to a 25% return by 2025. This shows he is very confident in bitcoin's future.
While many admire MicroStrategy’s approach, some critics are worried. Peter Schiff, a well-known bitcoin critic, warns about the rising average cost of buying bitcoin.
He said on X that Saylor’s next purchase might push his average cost above $70,000. Schiff warns that small price drops could turn into big losses.
This warning comes as Strategy plans to raise another $84 billion, split evenly between stocks and bonds. The goal is to buy even more bitcoin. This aggressive move has made some, like Coinbase, stay away.
Despite this, many institutions still back bitcoin. Over 13,000 companies and 814,000 people own Strategy shares. Plus, 55 million people have indirect exposure through ETFs and pension funds.
If Saylor continues to convert stock money into bitcoin, it will put steady buying pressure on the crypto. If more big companies follow his lead, some analysts believe bitcoin could reach $250,000 to $300,000 by the end of 2025. Such a jump would shake up how traditional finance and crypto markets interact.