Tensions Rise, But Saylor keeps Backing Bitcoin

As the markets wobble and capital flees risk assets, Michael Saylor persists. The founder of Strategy, indifferent to macroeconomic turmoil, has just added more than 22,000 bitcoins to his treasury. Indeed, the timing raises questions: the BTC correction is intensifying, geopolitical uncertainty is setting in. However, Saylor does not waver. For him, bitcoin is not a gamble, it is a conviction. A stark position, counter to the consensus, that reignites the debate on the resilience of the maximalist strategy.

A massive acquisition that defies market signals

On March 31, Strategy acquired 22,048 bitcoins, bringing its total portfolio to 528,185 BTC. This decision comes after a brief pause in purchases, breaking a series of several consecutive acquisitions.

The latent valuation of these assets now exceeds 8.6 billion dollars, with an overall return of about 24 % since the company’s initial investments. This operation comes as bitcoin has fallen back below 80,000 dollars, in a context of high volatility induced by macroeconomic tensions.

Far from being intimidated by this retreat, Michael Saylor asserts that “bitcoin is the best long-term asset available today,” which justifies the continuation of this accumulation strategy. Such an approach by Strategy is based on several quantitative observations :

• The recent drop in BTC (-22 % since January) remains moderate compared to the plunge of altcoins (-33 %) ;
• Strategy’s exposure to bitcoin currently represents over 8.5 billion dollars in gross investments ;
• The average purchase price per BTC is around 35,180 dollars, which provides significant margin for the company at this stage ;
• Strategy is now the largest bitcoin-holding entity in the world among publicly traded companies, ahead of Tesla and Coinbase.

By continuing this accumulation policy despite macroeconomic uncertainties, Saylor reaffirms his ambition to position his company as a pioneer in the digital monetary paradigm.

A growing dependence on an unstable asset

Strategy’s appetite for bitcoin is not solely fueled by its cash reserves. Thus, the company raised 21 billion dollars through the issuance of preferred shares, with the explicit goal of financing its BTC purchases.

This approach reinforces a strategy already criticized for its high leverage and almost monolithic exposure to a single asset. In a period where even the smallest price movement can lead to significant fluctuations on the balance sheet, this orientation raises increasing concerns.

Adam Back, CEO of Blockstream, mentions a perspective of returning to sustained inflation between 10 and 15 % over the next decade. In this context, he believes that bitcoin could “start to compete with gold in its use cases,” which would solidify its position as a safe haven.

However, this hypothesis is not universally accepted, especially since the extreme dependence of a public company on such a volatile asset remains a bold, if not perilous, bet.

In the event of a prolonged correction or unfavorable regulation, Strategy could find itself in a delicate position, which would affect its stock valuation, as well as its ability to raise new funds. This polarizing positioning, between conviction and speculation, will no doubt receive sustained attention in the months to come, as macroeconomic winds continue to blow. Michael Saylor’s strategy, as visionary as it may be, will still have to prove itself in a rapidly changing global economy.