Bitcoin Powerhouse strategy has added 6,220 BTC to its reserves and spent $ 739.8 million in cash at an average price of $ 118,940 per coin, according to a second of 21 July of 21 July submit.
The last acquisition represents 13.82 days in new Bitcoin offer, or almost double the total BTC that mined between July 14 and 20.
In the meantime, this last purchase brings the total Bitcoin holdings from Strategy to 607,770 BTC, taken over for around $ 43.61 billion for an average cost of $ 71,756 per coin. At the current market prices, the Bitcoin Treasury of the company is appreciated at $ 72 billion, so that a non -realized profit of almost $ 28 billion is locked.
Strategy said it has sold 1.64 million shares of its MSTR shares to finance the purchase, which resulted in around $ 736.4 million. The company also unveiled small divestments in STRK, STRF and strd shares and raised $ 3.9 million.
Warning for strategy copycats
As more companies use the Bitcoin Treasury Playbook of the strategy, some analysts start to warn of the potential disadvantages of the movement.
James Check, chief analyst at Checkonchain, warned In a post of July 21 on X that companies with aggressive Bitcoin strategies are possible on their way to problems. He described the risk as related to sustainable “Bitcoin-Grade statues of 2012 with gold quality.”
According to him, some companies may have already reached a peak, with their share premiums overloaded to levels that may never be recovered.
If such scenarios were to take place, he stated that those companies would do that:
“Be taken over or sell the BTC to buy back their shares.”
His worries reflect that Vaneck’s head of digital assets research, Matthew Sigel, who has previously warned That various Bitcoin-heavy companies can undergo risks.
In a post of June 16 on X, he criticized the widespread use of ATTH-Market (ATM) offers to finance Bitcoin purchases.
According to Sigel, companies can issue profitable new shares when their shares are far beyond the value of their underlying assets, known as Net Active value (NAV). This approach enables them to attract capital more efficiently, as seen with the strategy of Michael Saylor, who used high stock prices to finance large Bitcoin purchases through shares and turnover of bonds.
However, this approach has limits. If the share price slides close to NAV, the issuing of extra shares no longer creates value. Instead, the existing shareholders dilutes and weakens the investment case.
To mitigate these risks, Sigel advised to stop ATM programs when the stock trade drops 10 consecutive days under the NAV from the navel, prioritizing back purchase when BTC rises, but the stock prices leave and launch strategic reviews such as NAV discounts.
He also advised to bind executive compensation to the growth of the NAV share instead of BTC accumulation or the number of parts.