In the booming Bitcoin corporate treasury sector, Strategy is a long-standing leader. However, while others are accelerating, Michael Saylor has announced a summer break.
Strategy slows down Bitcoin purchases
Since 2020, Strategy — formerly MicroStrategy — has established itself as the beacon of Bitcoin in the sometimes turbulent corporate treasury sector. An operation carried out with the regularity of a BTC maximalist, allowing it to boast a portfolio of 597,325 BTC at the last count.
This amount is currently estimated at over $65 billion, most of which is provisional given the recurring purchases made under the impetus of its founder, Michael Saylor. The result: a growing number of imitators, most of whose Bitcoin treasury projects are likely to fail, according to this long-standing player in the cryptocurrency sector.
Faced with this unprecedented wave, now open to the highly volatile altcoin market, Strategy seems to be distancing itself. Indeed, it has been recording a significant slowdown in its BTC purchases for some time, to the point that some observers are wondering what will happen next.
“Some weeks, you just need to HODL.”
The Bitcoin buying frenzy triggered by Strategy is such that a single week without an increase in its BTC balance sets off alarm bells among analysts. This is exactly what is happening at the moment, with the balance remaining unchanged between June 30 and July 6.
This situation was confirmed by the recent filing of a Form 8-K with the SEC earlier this week to inform shareholders of significant changes, as well as by Michael Saylor’s statements summarizing the situation with this simple phrase: “Some weeks, you just need to HODL.” DCA (Dollar Cost Averaging) enthusiasts will appreciate this.
This lack of BTC acquisitions is a first since last April for Strategy and the publication of an unrealized loss of $5.9 billion on its Bitcoin holdings as part of its first quarter results. However, its second quarter financial results, released earlier this week, show unrealized gains of $14.05 billion.
The pause allows for a review of the situation. In Strategy’s case, this means a portfolio of BTC purchased at an average price of exactly $70,982, for a total estimated cost of $42.4 billion. This amount of BTC is equivalent to 2.8% of the total Bitcoin supply, giving it theoretical gains of $22.6 billion.
