Michael Saylor Doubles Down on Bitcoin, Adding 22,000 BTC to His Treasury

As the markets wobble and capital flees risk assets, Michael Saylor persists. The founder of Strategy, indifferent to macroeconomic turmoil

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, and overall, the winds of pessimism are swirling in the markets. Yet, Saylor does not waver. For him, bitcoin is not a gamble, it is a conviction—a stark position, counter to the consensus, that sparks lively debate.

A massive bitcoin buy despite market signals

On March 31, Strategy disclosed the acquisition of 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 in 2023. This operation is part of a broader strategy to invest up to 40 billion dollars in bitcoin by 2025.

This new purchase was executed as bitcoin fell back below 80,000 dollars, in a context of high volatility induced by macroeconomic tensions and a latent threat of a bear market.

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 despite market signals.

Such an approach by Strategy is based on several quantitative observations :

This analysis leads Strategy to prefer bitcoin over other assets classes, leading it to gradually sell off its remaining equity securities to channel the proceeds into BTC.

A growing dependence on an unstable asset

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

This approach, unveiled during a presentation to analysts, 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.

Moreover, Strategy’s stock price has lost more than half its value since the beginning of 2022, partly due to the depreciation of bitcoin and the company’s own valuation difficulties.

According to Adam Back, CEO of Blockstream, this situation could lead to 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.