That was quick. Michael Saylor‘s software company Strategy, known for its aggressive Bitcoin strategy, has struck again and massively increased its crypto reserves. With this latest acquisition, it not only expanded its portfolio but also prematurely exceeded an important return target for 2025. But not everyone is enthusiastic about the buying spree.
As the company announced in a mandatory filing with the U.S. Securities and Exchange Commission (SEC) on May 12, Strategy acquired an additional 13,390 Bitcoin for $1.34 billion between May 5 and 11. The newly acquired coins cost an average of $99,856 each.
This acquisition increased Strategy’s total Bitcoin holdings by 2.4 percent to 568,840 BTC. These were acquired at an average price of $69,287 per coin, corresponding to a total value of approximately $39.4 billion.
Return target for 2025 already achieved
With the latest acquisition, Strategy has achieved its previous Bitcoin return target for 2025, as co-founder Michael Saylor proudly announced on X on May 12. The Bitcoin return – an indicator that represents the percentage change in the ratio between BTC holdings and assumed diluted shares – climbed to 15.5 percent.
As a reminder, Strategy originally aimed to maintain its Bitcoin return target for the entire year of 2025 at 15 percent, following an impressive BTC return of 74 percent in the previous year. But that doesn’t seem enough for Saylor: At the beginning of May, the company had already raised the bar for 2025 to an ambitious 25 percent.
Criticism from Peter Schiff
Despite achieving the return target and optimistic forecasts, critics remain skeptical of the company’s aggressive buying strategy. Well-known Bitcoin skeptic Peter Schiff immediately responded to Saylor’s announcement on X and painted a bleak scenario.
“Your next purchase will likely push your average price above $70,000,” Schiff said. He predicted that the next Bitcoin price drop “will likely push the market price below your average cost.” He continued: “Not good, considering how much you borrowed to buy the Bitcoin. When you sell, small paper losses become huge real losses.”
Not everyone is jumping on the bandwagon
While Schiff is known for his often inaccurate Bitcoin predictions, some major crypto companies have reportedly also distanced themselves from Strategy’s aggressive accumulation model. According to a Bloomberg report, cryptocurrency exchange Coinbase repeatedly considered a Bitcoin investment strategy similar to that of Saylor’s Strategy, but each time decided against it due to the risk of bankruptcy.
Michael Saylor and Strategy remain fully committed to Bitcoin. Recent purchases and the achievement of their return target underscore this strategy. However, the volatility of the Bitcoin price continues to pose significant risks, as critics like Peter Schiff never tire of pointing out.
[newsletter_form lists="1"]
