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Michael Saylor buys 850 BTC-MSTR shares in free fall!
Michael Saylor Buys 850 BTC for $99.7M as MSTR Stock Falls. Concerns about company valuation are growing.
Michael Saylor buys 850 BTC-MSTR shares in free fall!
Michael Saylor’s Bitcoin portfolio expansion strategy recently announced the purchase of 850 BTC for $99.7 million. This investment ensures that the company's total reserves now reach 639,835 BTC, an estimated value of approximately $73.92 billion. Despite this significant accumulation, MSTR's share price has declined by 5% over the past few months, while Bitcoin's value has fallen by 1.45%. These figures were disclosed in an SEC Form 8-K filing dated September 22nd.
The company has funded its Bitcoin purchases largely by selling shares in a so-called “at-the-market” program. However, this strategy has raised concerns about potential weakness as the equity sales allow the company to accumulate reserves without adding additional debt, but dilute existing shareholders. Some analysts have noted that simply selling shares is unable to capitalize on the company's past outperformance compared to Bitcoin.
Market capitalization and buyer fears
The market capitalization of the strategy is currently $ 97.43 billion, which creates a discrepancy between the company value and the Bitcoin-Holdings. Many retailers express concerns whether the company should actually be rated higher than just its Bitcoin portfolio. Saylor has partially attributed the negative market mood to the bots that spread incorrect information about the company.
The developments surrounding Michael Saylor and his Bitcoin accumulation strategy raise questions about the sustainability of his approach. As the company continues to purchase large amounts of Bitcoin, investors appear to be becoming increasingly skeptical. The dynamics of the markets make it clear that the strategy may need to be reconsidered in order to increase investor confidence.
In total, this step shows how intensely the Bitcoin markets have become and how companies fight to keep their ratings and strategies on course in a rapidly changing environment. Despite the impressive Bitcoin-Holdings, the challenge remains to maintain the company's share price and to secure stable growth.
For further details on these developments, see the coverage on Crypto News.