Syz Capital Adviser Proposes Aggressive Bitcoin Strategy for Strategy

Richard Byworth, a partner at Syz Capital and an adviser at Jan3, has suggested that Michael Saylor’s Strategy should adopt a more aggressive approach to acquiring Bitcoin. Byworth proposed that Strategy could significantly increase its Bitcoin holdings by purchasing cash-rich companies and converting their cash into Bitcoin, thereby avoiding over-the-counter (OTC) buys. This strategy, according to Byworth, would not only boost Strategy’s market value but also benefit its shareholders by increasing the multiple of Net Asset Value (mNAV).

Byworth’s comments come at a time when the supply of Bitcoin on exchanges is declining, a trend that Fidelity Digital Assets noted on April 24. This decline is anticipated to accelerate in the near future, making it more challenging for companies like Strategy to acquire Bitcoin through traditional means. Byworth argued that in such a scenario, Strategy should consider a “super aggressive” buying strategy, even if it means pushing the price higher and causing market impact. He believes that this approach would ultimately benefit Strategy’s shareholders by increasing the mNAV and making dilution more accretive.

Byworth also highlighted the potential for Strategy to acquire companies in Japan that hold significant cash reserves but have low price-to-cash ratios. He suggested that Strategy could follow the example set by Metaplanet, a Japanese investment firm that recently increased its Bitcoin holdings to over $400 million. Byworth believes that acquiring such companies and immediately converting their cash into Bitcoin could be a strategic move for Strategy, especially as the supply of Bitcoin on exchanges continues to decline.

Byworth’s proposal comes as Bitcoin trades below the psychological $100,000 price level, a threshold it fell below in early February. Despite this, Byworth remains optimistic about the potential for Strategy to increase its Bitcoin holdings and benefit its shareholders. He believes that by adopting a more aggressive buying strategy, Strategy could not only boost its mNAV but also position itself as a leader in the Bitcoin market.