Michael Saylor’s Firm Acquires 3% of Bitcoin Supply: A Game-Changer!
Michael Saylor’s Strategy Acquires Over 3% of All bitcoin Ever Minted
bitcoin Holdings Surge Amid Market Growth
In a significant move, Michael Saylor’s Strategy has now secured more than 3% of the total bitcoin ever created, following its latest acquisition of the cryptocurrency. This development highlights the company’s aggressive strategy in the digital asset space.
Major bitcoin Purchase Details
According to a recent filing with the US Securities and Exchange Commission, the former MicroStrategy CEO purchased 6,220 bitcoin for approximately $739.8 million during the week ending July 20. This acquisition has brought the firm’s total bitcoin holdings to 607,770, representing about 3.05% of the nearly 19.9 million bitcoin that have been mined to date. The current value of this substantial stack is estimated at around $72 billion.
Innovative Financing Strategies
Strategy has been employing a mix of common and preferred shares, along with debt instruments, to finance its bitcoin purchases since it began accumulating the asset in late 2020. This approach was initially adopted as a safeguard against inflation, and it has inspired numerous other companies to follow suit. As it stands, Strategy is recognized as the largest corporate holder of bitcoin globally, while BlackRock’s iShares bitcoin Trust ETF boasts around $86 billion in assets.
bitcoin‘s Unique Value Proposition
While the unlimited supply of many cryptocurrencies raises concerns among investors, bitcoin‘s appeal as a store of value is reinforced by its capped supply of 21 million coins. The original code of the bitcoin network includes mechanisms that enhance its scarcity, such as halving events that occur every four years, reducing the rewards miners receive. The final bitcoin is projected to be mined by the year 2140.
Future Financing Plans
In a separate announcement, Strategy revealed plans to issue five million shares of variable rate Series A perpetual Stretch preferred stock to fund further bitcoin acquisitions. This marks the fourth series of preferred shares the company has introduced.
Performance Comparison
Since Saylor began his bitcoin investment journey, the common shares of Strategy have skyrocketed by more than 3,500%. In contrast, bitcoin itself has appreciated by approximately 1,100% during the same timeframe, while the S&P 500 index has seen a more modest increase of around 120%.
This remarkable performance underscores the growing interest and investment in bitcoin as a viable asset class.
