Michael Saylor’s strategy has breathed new life into Bitcoin [BTC] buying frenzy again. On April 27, the largest Bitcoin Treasury company added 3,273 BTC worth $255.0 million, at $77,906 per Bitcoin.
The recent purchase has helped Strategy achieve a 9.6% BTC return this year. This indicates a 9.6% increase in the amount of Bitcoin supporting each stock since the start of the year.
Meanwhile, Bitcoin’s price at the time of writing was $76,451.03. Given the new average purchase price, Strategy therefore had a paper loss of $4.76 million. That said, Bitcoin’s average price since 2020 is $75,537.
Strategy’s Bitcoin stock
In reality, Strategy’s MSTR shares have reached a record high of 818,334 BTC, valued at $61.81 billion, according to BitcoinTreasuries.NET.
Notably, the new addition came after Saylor made the ‘Orange Dot’ tease on April 26.
Mixed reactions from the community
However, this move was criticized by Peter Schiff, who stated:
Schiff argues that Strategy’s purchase alone did not boost Bitcoin’s price enough to justify the $1 million forecast.
However, many stood in defense of Strategy Adam Livingston went to X and underlined that Strategy’s debt risk is overestimated.
He said:
Everyone keeps staring at Strategy’s debt load like it’s a corporate guillotine.
Livingston said much of Strategy’s debt is convertible rather than traditional, making it less burdensome. He considers the debt manageable as it represents only about 10.5% of the company’s value. However, this depends on both the price of Bitcoin and MSTR stock continuing to rise.
Echoing similar sentiments, another X account with the username ‘Plan C’ has been added:
The strategy will reach a market cap of $1 trillion in five years and a market cap of $2 to $2.5 trillion in seven to nine years, assuming both the Saylor Curve and the Bitcoin Power Curve hold.
Several alarming market signals
The move came as shares of MSTR were trading at $169.20, down 1.06% from the previous day but up more than 11% so far this year. On the other hand, the Spot Bitcoin ETF, which saw inflows, recorded outflows worth $263.2 million on April 27.
On April 27, CryptoQuant’s Bitcoin Exchange NetFlow chart flagged distribution risk as a large amount of Bitcoin moved to exchanges.
So, while Strategy remains one of Bitcoin’s most reliable bulls, near-term signals point to caution.
Final summary
- Amid weak market dynamics, Michael Saylor’s strategy adds more Bitcoin, bringing its total holdings to 818,334 BTC.
- However, Peter Schiff believes that if MSTR reaches 5% of the total Bitcoin supply, the price of BTC will fall to $60,000.