Thomas Daniels
Michael Saylor’s firm, Strategy, hints at further Bitcoin purchases, reinforcing its position as the largest corporate holder of the cryptocurrency, while facing scrutiny over transparency practices.
Strategy, formerly known as MicroStrategy, has signaled its intent to continue accumulating Bitcoin, following its recent acquisition of 4,020 BTC valued at approximately $427 million. This purchase brings the company’s total holdings to 580,250 BTC, acquired at an average price of $69,979 per coin, amounting to a total investment of over $40.6 billion.
Michael Saylor, Strategy’s co-founder and executive chairman, shared a Bitcoin chart on social media with the caption, “Orange is my preferred color,” a phrase he has previously used to indicate impending Bitcoin acquisitions. This marks the eighth consecutive week of Bitcoin purchases by the company.
Strategy’s aggressive accumulation strategy has made it a significant player in the cryptocurrency market, with its holdings surpassing those of the U.S. and Chinese governments combined. The company’s approach has influenced market dynamics, with analysts suggesting that such institutional buying could lead to a supply shock, potentially driving Bitcoin prices higher.
However, Strategy’s lack of regular proof-of-reserve audits has raised concerns among investors and market participants. Critics argue that without transparent verification of its holdings, it’s challenging to confirm the company’s actual Bitcoin reserves. In response, Saylor has stated that publishing wallet addresses could expose the company to security risks, including potential attacks from hackers and other malicious actors. He emphasized that as a publicly traded company, Strategy undergoes regular audits by reputable firms, ensuring compliance with financial regulations.
Despite the controversy, Strategy’s stock performance has been closely tied to Bitcoin’s price movements, with the company’s shares experiencing significant growth in tandem with the cryptocurrency’s recent surge to record highs.
