Bitcoin News Today: Michael Saylor Bets Corporate Future on Bitcoin’s Volatility

Michael Saylor’s Strategy, the world’s largest corporate holder of Bitcoin, has continued to expand its digital asset treasury, acquiring an additional 430 Bitcoin units at an average price of $119,666 each, totaling $51.4 million in the latest week of purchases [1]. The acquisition brings the company’s total Bitcoin holdings to 629,376 coins, which, at the current price of $115,000, is valued at approximately $72 billion. The company purchases Bitcoin at an average cost of $73,320 per unit, reflecting a long-term strategic approach to accumulating the cryptocurrency regardless of short-term price volatility [1].

A key development in Strategy’s financing strategy is the recent revision of its at-the-market (ATM) equity issuance guidance. The company had previously committed to avoiding common stock issuance when its shares traded below 2.5x mNAV in an effort to mitigate dilution risks for equity holders [1]. However, under the new guidelines, Strategy will now have the flexibility to issue equity below this threshold if it deems the move advantageous for the company’s financial position. This change in approach highlights a strategic pivot aimed at securing capital for further Bitcoin purchases without relying solely on traditional financing methods [1].

Saylor has long championed Bitcoin as a critical component of corporate strategy and is now pushing the boundaries of unconventional financing instruments to support this vision. Strategy is exploring the issuance of perpetual preferred stock, a structure that offers flexibility for the company but carries uncertainty for investors due to its lack of maturity dates and potential for skipped dividend payments [2]. The latest offering, labeled “Stretch,” features variable-rate dividends and no voting rights, blending characteristics of both debt and equity. Saylor has positioned this as a means to fund Bitcoin purchases while reducing reliance on common stock sales and convertible bonds [2].

The company has raised approximately $6 billion in 2024 through four perpetual preferred offerings, with the most recent “Stretch” tranche raising $2.5 billion—ranked among the largest crypto capital raises of the year [2]. Nearly 25% of the latest offering was purchased by retail investors, underscoring the loyalty of Saylor’s base and the continued willingness of his followers to support his vision [2]. This structure enables Strategy to maintain liquidity and continue its aggressive Bitcoin accumulation strategy without significantly diluting common shareholders, although it introduces potential financial risks if Bitcoin prices fall or market conditions shift [2].

The broader market has responded with some skepticism. MSTR shares have declined by 2.2% in pre-market trading and have dropped over 10% in the past week, despite a year-to-date gain of around 20% [1]. The shift in financing strategy reflects Saylor’s broader ambition: to create what he terms a “BTC Credit Model,” where a volatile asset—Bitcoin—serves as the foundation for income-generating securities. Saylor has speculated that the model could, in theory, raise up to $100 billion or even $200 billion in capital, depending on market demand. However, the success of the model hinges on maintaining sufficient investor confidence and the continued value appreciation of Bitcoin [2].

Source: [1] Michael Saylor's Strategy Added $51M of Bitcoin Last Week (https://finance.yahoo.com/news/michael-saylors-strategy-added-51m-121644797.html) [2] Michael Saylor Bets on a $100 Billion Bitcoin 'Credit' Dream (https://finance.yahoo.com/news/michael-saylor-bets-100-billion-133948716.html)