Michael Saylor, the founder and chairman of Strategy, has seen significant gains from his company’s investment in Bitcoin. Strategy currently holds 592,345 Bitcoins, making it the largest corporate holder of BTC globally. The company acquired its Bitcoin at an average price of around $70,702 per coin. As of the latest trading data, Bitcoin is valued at approximately $106,824 per coin. This price increase has elevated the total value of Strategy’s Bitcoin portfolio to $63.28 billion, resulting in an unrealized profit of $21.3 billion, which represents a gain of about 51%.
Saylor’s strategy of consistently purchasing Bitcoin, regardless of market fluctuations, known as dollar-cost averaging, has proven to be effective. He has frequently advocated for Bitcoin as a long-term store of value and a superior alternative to holding cash. This approach has garnered growing investor confidence, as reflected in Strategy’s stock performance. The company’s stock is currently trading at $393.24 with a market capitalization of approximately $107.51 billion. This valuation indicates a 1.67x premium to its net asset value, further underscoring the market’s optimistic outlook on the company’s Bitcoin-focused strategy.
Saylor’s visionary approach to Bitcoin investment, once considered risky, is now being recognized as a strategic move. As Bitcoin continues to appreciate, it has brought in substantial paper profits for the company. However, not all investors share this optimism. Two prominent Wall Street investors, Jim Chanos and Cliff Asness, have criticized Saylor’s Bitcoin strategy. They dispute Saylor’s assertion that the company’s debt is not risky even if Bitcoin’s value crashes. Chanos pointed out that the debt must still be repaid, while Asness noted that paying with stock would not be feasible if Bitcoin’s value drops and the company’s overall value decreases.
