Michael Saylor-Led Strategy (Formerly MicroStrategy) Adds 130 BTC, Spending $10.7M

The Michael Saylor-led financial intelligence firm Strategy, formerly MicroStrategy, announced today that it had added 130 Bitcoin (BTC) to its holdings

Financial intelligence firm Strategy, formerly known as MicroStrategy and led by the renowned Michael Saylor, has recently added 130 Bitcoin (BTC) to its vast portfolio.

As disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) on Monday, March 10 to 16, 2025, Strategy acquired the BTC units at an average price of $82,981. The company's preferred stock offering enabled the purchase, generating $10.7 million in total funds.

The news comes as the leading cryptocurrency on Monday saw a 0.6% decline in the last 24 hours, trading at a price of $83,400 according to CoinGecko.

Is Saylor's company losing its touch with the market? For now, it seems so. While Strategy's actions usually garner attention and influence the crypto sphere, the recent purchase barely registered any change in Bitcoin's price chart.

The slight uptick in the early hours of Monday, where BTC's price touched $83,800 before slumping, might be att گذشته باشدto another factor.

The new acquisitions follow Strategy's previous purchase of 20,365 BTC on February 24, 2025, for nearly $2 billion.

The company, known for its massive Bitcoin holdings, is now juggling a hefty capital structure, with a large portion tied to high-interest debt instruments. To service this debt and facilitate further Bitcoin purchases, Strategy is planning to issue $2 billion in Series A preferred stock over the next twelve months.

The company's stock trades at a premium to its net asset value, which is a measure of the company's assets minus its liabilities. This premium is being driven by investors' interest in Strategy's Bitcoin holdings.

However, this comes at a steep cost. As of December 31, 2024, Strategy had total debt of $3.2 billion and preferred equity of $1.1 billion, compared to common equity of $4.3 billion. This capital structure is heavily skewed towards debt and preferred equity, creating a house of cards that could collapse if the value of Bitcoin tanks.

A prolonged market downturn could strain Strategy's ability to service its debt, forcing it to either dilute shareholders further or, even worse, liquidate its Bitcoin holdings. Both scenarios would be disastrous for the company's long-term health.

The company's executives seem to be aware of this risk, as they stated in the filing that "the substantial increase in the price of common preferred, Series A, in response to the announcement of the company’s intent to sell preferred stock to fund bitcoin purchases may be anomalous and not necessarily indicative of the market response to future issuances of preferred stock."

If Saylor's company is no longer capable of moving the market with its buying spree, then perhaps the real terror factor will set in if Strategy decides to sell its nearly half a million Bitcoin. A sudden liquidation, or even the rumor of one, could send Bitcoin's price into a nosedive by triggering a cascade of panic selling.

On Reddit's UK Bitcoin community, several users are asking if Strategy's BTC accumulation spree is best for crypto. Some questioned Saylor's trustworthiness, citing his checkered past, including a $25 million tax fraud conviction and SEC charges for fraudulent financial reports. Others fret about Strategy's debt-heavy balance sheet, worrying a market crash could force a sell-off.

The company's actions could also be viewed as a single-minded focus on capital gains at the expense of a broader vision for the crypto ecosystem. Satoshi Nakamoto intended to make BTC a decentralized dream to free finance from centralized control. A single corporate entity handling 2% of the total supply and publicly claiming they want to buy more, doesn't really spell decentralization.

To understand why investors are so jittery, let's take a bite at Strategy's financial playbook, or, as I see it, a bit of risk and recklessness. The company's Bitcoin buying spree is sponsored by debt instruments, stock offerings, and now, high-interest preferred stock issuances, like the recent $10.7 million raise. It plans to issue $2 billion more to fund additional purchases.

We all know business is about risk, and that's exactly the type of financial engineering that keeps Strategy's stock trading at a premium to its net asset value.

However, this comes at a steep cost, creating a capital structure bloated with high-interest debt, a house of cards waiting to collapse if Bitcoin's value tanks.

A prolonged market downturn could strain Strategy's ability to service its debt, forcing it to either dilute shareholders further or, even worse, liquidate its Bitcoin holdings. Where will the crypto market stand if this happens? Two words, massive losses.

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