Strategy Acquires 4,020 BTC for $427 Million, Holds 3% of Total Supply

Michael Saylor, the co-founder of Strategy, recently posed a thought-provoking question on social media: “Are you a Bull?” This query, accompanied by an image of a lone red bull amidst a field of sheep, was posted without any market analysis or price targets, leaving the interpretation open to his followers.

The post came on the heels of Strategy's latest Bitcoin acquisition, where the company purchased 4,020 BTC for $427 million, averaging $106,237 per coin. This acquisition was funded through a combination of stock and preferred security sales. With this purchase, Strategy now holds 580,250 BTC, which constitutes approximately 3% of the total Bitcoin supply that will ever exist. This is the company’s second major accumulation this month, bringing its May total to over 11,000 BTC.

Strategy's Bitcoin holdings are currently valued at around $63.46 billion. The company's market capitalization stands at $102.5 billion, with an enterprise value just above $110 billion. Approximately 62% of Strategy's valuation is directly tied to its Bitcoin position. The stock, trading under the ticker MSTR, is priced at $370.71, with a NAV multiple of 1.616.

Strategy began its Bitcoin-focused approach in August 2020 and has maintained this strategy through various market conditions. The company has utilized equity raises, debt offerings, and internal cash to expand its holdings, often making large purchases during both market rallies and pullbacks. The latest purchase aligns with this pattern, occurring when both Bitcoin and MSTR shares are trading near local highs.

Saylor's message did not come with a detailed press release or breakdown, but the timing of his post suggests a connection to Strategy's recent Bitcoin acquisition. The question "Are you a bull?" seems to challenge his followers to consider their stance on Bitcoin and the broader cryptocurrency market.

In a separate development, Saylor has sparked a significant debate within the cryptocurrency community by questioning the practice of publishing proof-of-reserves. During a side event at the Bitcoin 2025 conference, Saylor expressed concerns about the security risks associated with this transparency method. He argued that conventional proof-of-reserves could expose firms to serious security threats, thereby compromising the security of custodians, exchanges, and investors.

Saylor's stance has elicited mixed reactions from the crypto community. While some agree with his perspective, others believe that proof-of-reserves is essential for ensuring transparency and building trust among investors. This debate underscores the ongoing tension between security and transparency in the cryptocurrency industry.

Saylor's comments come at a time when Strategy has been under scrutiny for its aggressive Bitcoin acquisition strategy. The company has amassed over $60 billion worth of Bitcoin, funded by billions of dollars worth of dilutive stock offerings, convertible debt, and dividend-yielding preferred shares. Despite the significant profits from its Bitcoin holdings, some investors and analysts have raised concerns about the sustainability of Strategy's strategy, particularly in the face of new competition and rising interest rates.

Saylor's warning against proof-of-reserves is not the first time he has expressed concerns about the security of cryptocurrency holdings. In the past, he has advised companies to be cautious about exposing their Bitcoin reserves to potential security threats. His latest comments highlight the importance of balancing transparency with security in the cryptocurrency industry.

The debate over proof-of-reserves is likely to continue as more companies adopt Bitcoin as a reserve asset. While some may follow Saylor's advice and avoid publishing proof-of-reserves, others may choose to prioritize transparency over security. Ultimately, the decision will depend on each company's risk tolerance and strategic goals.