Michael Saylor is back with another update, and this time, it is about a fresh Bitcoin (BTC) gain for Strategy holders. Formerly known as MicroStrategy, the business intelligence firm turned Bitcoin-focused entity has once again expanded its holdings. Saylor took to X - what many people still call Twitter - to break down the numbers.
A solid 18,527 BTC were added to the company’s treasury just over the past week. That’s a 4.1% yield when stacked against the 478,740 BTC the company already held. With Bitcoin’s current price hovering around $97,000, this latest batch translates to a value north of $1.8 billion. The total Bitcoin stash now? Roughly $46.73 billion.p0
Yuri MolchanThere is a method to this accumulation, one that has some investors paying close attention. The strategy - or Strategy’s strategy - leans on a couple of core ideas.
First, Bitcoin is expected to appreciate at an average rate of 25% annually over the next five years. Second, the company continues to secure funding at rates lower than that projected appreciation.
This setup lets Strategy play the volatility game - selling Bitcoin’s short-term price swings to options traders while simultaneously using low-cost borrowed money to acquire more of it. Many of these 0% convertible notes will not mature for another five years, meaning Strategy could leverage a higher Bitcoin price as collateral to roll over the debt.
If Bitcoin does not climb fast enough?
Those bondholders still have a built-in safety net. They get the option to convert their debt into MSTR shares - at a premium. That, in turn, supports the stock price, keeping the whole structure intact.
Alex DovbnyaIt is a cycle that has worked so far. The big question now? Whether Bitcoin keeps up its end of the deal. If it does, Strategy stands to keep growing its holdings while navigating the risks that come with balancing leverage and long-term value.
Either way, Saylor and his team seem ready to ride it out.
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