MicroStrategy Increases Bitcoin Holdings Despite Market Dip

HERNDON, Va. — MicroStrategy, now known as Strategy, is ramping up its Bitcoin purchases even as cryptocurrency prices stumble. Executive Chairman Michael Saylor announced on CNBC that the company is “accelerating” its buying efforts amid a dip in Bitcoin’s value, which fell to $95,000 recently.

“We are buying. We’re buying quite a lot, actually,” Saylor said, promising updates on new acquisitions to be reported on Monday. This comes as retail sentiment for Bitcoin moves from neutral to bearish, while Saylor believes Strategy’s strategy will pay off in the long term.

Bitcoin dropped over 6.6% in the last 24 hours, contributing to a broader decline in market sentiment. Meanwhile, shares of Strategy also took a hit, declining 3.8% at market open, reflecting growing investor concerns.

Despite these challenges, Saylor remains optimistic. He noted that Strategy now holds about 3.1% of the entire Bitcoin network, acquired at an average price of around $74,000 per coin. In the past week alone, the company has reportedly transferred over 47,000 Bitcoin to new wallets, signifying ongoing confidence in the cryptocurrency.

Saylor emphasized that while volatility is inherent to Bitcoin, he is comfortable with its current price level of $95,000. He dismissed concerns regarding the company being forced to sell its Bitcoin holdings if prices continue to drop, highlighting its conservative leverage strategy.

When comparing stock performance, Saylor pointed out that while Nvidia‘s shares have surged by 1,324% since 2020, Strategy’s shares increased by 932% in the same period. However, MSTR stock has seen a decline of more than 40% in the last year.

Analysts from Bernstein indicate that fears about the firm’s liquidity and leverage are overstated, asserting that the company can effectively manage its debt of $8 billion against its $61 billion in Bitcoin assets. They state that Strategy maintains a strong market position, which could allow for continued Bitcoin acquisitions even in a bearish market.

Saylor concluded by reiterating the company’s commitment to its Bitcoin strategy, stating, “We expect to continue buying more Bitcoin through this market correction,” confident that their capital structure can weather significant declines in cryptocurrency prices.