Michael Saylor's bold Bitcoin bet could reshape market dynamics during downturn

Michael Saylor's bold Bitcoin bet could reshape market dynamics during downturn

Michael Saylor's Strategy is deepening its Bitcoin acquisition, now holding 714,644 BTC worth $49.3 billion, despite facing a $12.4 billion Q4 loss and market instability.

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Strategy, a Bitcoin treasury company co-founded by Michael Saylor, has continued its streak of Bitcoin acquisitions, marking the twelfth consecutive week of purchasing the cryptocurrency even amid a significant market downturn. The company's most recent transaction involved acquiring 1,142 BTC on February 9, totaling over $90 million, which increased its holdings to 714,644 BTC, valued at approximately $49.3 billion at current market rates.

The ongoing market dip was exacerbated by a flash crash in October, which saw Bitcoin's value plunge by over 50% from its peak of more than $125,000. This drop pushed prices below Strategy's average acquisition cost of $76,000 per Bitcoin. Despite the adverse conditions, Saylor's company has resisted analyst predictions that it would cease purchasing or liquidate its assets.

In addition to the purchasing activity, Strategy reported a fourth-quarter loss of $12.4 billion, which contributed to a 17% decline in its stock price initially. However, shares have seen some recovery, closing at $133.88 recently. The company’s multiple on net asset value (mNAV) currently sits at 0.90, indicating potential financial strain amid wider challenges in the crypto treasury sector.

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