Michael Saylor Abandons ‘0 Bitcoin’ Doctrine for Strategy with 843,000 Bitcoins
Led by Michael Saylor, Strategy has decided to shift its Bitcoin-focused strategy by increasing cash reserves and centering its STRC shares.
As one of the largest institutional investors in the cryptocurrency world, Strategy is signaling a remarkable strategic shift following its announced $8.2 billion loss in the second quarter and a five-week halt in purchases. The company’s founder, Michael Saylor, stated that the previous “%100 Bitcoin” approach will now give way to a mix of cash and digital assets. Saylor’s striking words, “Perhaps the best way to buy the most Bitcoin is not to buy the most Bitcoin,” summarize the company’s financial roadmap for the new era.
During this period, the preferred stocks referred to as STRC have become the main engine for the company’s capital increase. Saylor emphasized that demand for this instrument is 50 to 100 times higher than all other options, highlighting that they are focusing all their efforts on preserving the value of this asset. Institutional interest in STRC also supports this strategy; institutional ownership, which was $1.1 billion in mid-March, reached $3.1 billion by early July, accounting for 29 percent of the total.
Analysts’ Price Target Expectations and STRC-Focused Growth
Major analytical firms such as TD Cowen and Benchmark maintained their “buy” recommendations, supporting the company’s moves. However, downward revisions in price targets were observed due to fluctuations in Bitcoin prices. Benchmark lowered its price target from $570 to $435, while TD Cowen pointed to the $260 level. Company management announced that they would disciplinedly repurchase shares if the STRC price falls below $100 and that the current $3.75 billion cash reserve is sufficient to meet obligations for two years.
While the current reserve of the Strategy company is recorded as 843,775 BTC, it was noted that the company has purchased approximately 175,000 Bitcoins since the beginning of the year but sold only 3,600. Mizuho analysts renewed confidence in Strategy’s long-term vision, stating that the company has “successfully weathered the storm” despite sharp market downturns. Despite the company’s paper losses on the total Bitcoin price, the strategy of maintaining a cash balance continues to find acceptance on the institutional side.