Bitcoin News Today: Strategy Aims to Acquire 7% of Bitcoin Supply to Preserve Capital

Strategy, led by Michael Saylor, is expanding its Bitcoin holdings with the goal of acquiring up to 7% of the total supply, a move that underscores the company’s long-term capital preservation strategy. As of now, the firm holds 628,791 BTC, valued at $72 billion, representing over 3% of the circulating supply [1]. The company aims to continue increasing its Bitcoin treasury without monopolizing the asset, emphasizing a balanced approach to distribution [2]. Saylor has stated that Strategy does not intend to own all of Bitcoin and prefers a range between 3% and 7% to maintain a healthy market [3].

This strategic shift began in August 2020, when Strategy—formerly MicroStrategy—initiated Bitcoin purchases as part of a broader corporate treasury initiative. Since then, the company’s stock price has surged by over 2,488%, reflecting strong investor confidence in its approach [4]. The firm funds its Bitcoin acquisitions through debt issuance and maintains a buy-and-hold strategy, ensuring no sales even amid price volatility. During a recent earnings call, Saylor noted that even a 90% drop in Bitcoin’s price would not force Strategy to liquidate its holdings [5].

Analysts have taken notice of Strategy’s bold move. Benchmark analyst Mark Palmer recently raised the company’s price target to $705, an 85% increase from current levels [6]. However, experts caution that while Strategy’s Bitcoin treasury strategy has yielded impressive returns, it is not a model suitable for all corporations. The company’s pivot during the pandemic from software to Bitcoin highlights a strategic adaptation to inflationary pressures and economic uncertainty [7].

Strategy views Bitcoin as a scarce and decentralized asset that outperforms traditional investments in capital preservation. Saylor encourages other corporations to adopt similar strategies to hedge against inflation, reinforcing the notion that Bitcoin should be widely distributed rather than concentrated in the hands of a few [8]. The company’s risk management strategy is designed to withstand major price fluctuations without compromising long-term value [9].

The market has responded positively to Strategy’s approach, with the firm now holding the largest corporate Bitcoin treasury. As the company works toward its 7% target, it continues to influence the broader corporate adoption of digital assets. By balancing significant exposure with broad market participation, Strategy is setting a precedent for corporate investment in cryptocurrencies [10].

Sources:

[1]https://en.coinotag.com/strategy-considers-increasing-bitcoin-holdings-to-potentially-7-of-total-supply-says-michael-saylor/