Strategy, the world’s largest Bitcoin reserve company, has recently found itself at the center of numerous discussions. The company revised its targets for this year downward due to the current market conditions and announced that they might sell BTC if necessary, which fueled fear, uncertainty, and doubt (FUD). Subsequently, they created a cash reserve, which sparked further debates.
Significant Bitcoin Acquisition
As the article was being prepared, Strategy announced last week’s BTC purchase. They acquired a total of 10,624 BTC, one of the highest figures observed in a long while. The company spent $963 million for this purchase, effectively addressing questions regarding why they weren’t investing in Bitcoin with their $1.4 billion cash reserve, doubting their trust in BTC.
With this new acquisition, Strategy’s total assets have risen to 660,624 BTC. The recent purchases were funded through the issuance and sale of MSTR and STRD preferred shares, done at an average cost of $90,615. This indicates that they can continue to find significant cash above MNAV 1, which stands at 1.13, far from the dip observed last week.
Concerns and Responses
The average cost of all acquisitions to date has increased to $74,696, reflecting the substantial growth in their reserves since the November elections.
As is typical with each buying announcement, BTC prices dropped, but this purchase was significant. At the time of writing, Trump announced plans to sign a major executive order for artificial intelligence this week. If Trump’s move supports risk markets, it could also boost cryptocurrencies.
The third major development involved statements from White House Senior Advisor Hassett, who mentioned:
“Powell is likely in agreement that rate cuts are a prudent step. We should lower rates a bit more and continue with cuts while monitoring data.
Trump has many good options. Trump faces a difficult choice.
Positive supply shocks will help the economy. AI makes the economy operate a bit faster.
Trump will deliver important messages about the economy this week. A lot of good news for the economy is expected.
Negotiating ACA subsidies is possible. Discussions will be held with Senate Republican Leader Thune today.
In a similar scenario to the 1990s, there is room for the 10-year yield to fall.”
Regarding Trump’s announcement this week, Hassett said, “He will clearly state that there is a single set of rules for U.S. companies.”