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Strategy owning 3-7% of Bitcoin supply is not too much – Michael Saylor
MicroStrategy’s Chairman and Co-Founder, Michael Saylor, has dismissed concerns regarding the company’s aggressive Bitcoin buys. This comes after Strategy revealed a profitable Q2, marking the first time in several quarters.
Saylor has emphasized that there is nothing wrong with his firm considering 1.5 million BTC, which would represent around 7% of the total Bitcoin supply. To put this into perspective, BlackRock reportedly holds more than 3-7% of the overall Bitcoin supply.
The company currently holds 628,791 BTC, amounting to roughly 3% of the total Bitcoin supply. In order to achieve the mentioned goal of owning a staggering 1.5 million coins or about 7%, Strategy would have to purchase an additional 871,209 BTC.
Strategy’s recent Q2 earnings call saw them report a net income of $10 billion, which is a significant improvement over previous quarters’ losses. The company has been able to achieve this growth through the sale of its treasury management business and other financial moves.
A substantial portion of these profits have been reinvested into Bitcoin, with Strategy’s BTC holding gain hitting $13.2 billion on a year-to-date basis.
The aggressive acquisition of BTC has been funded via stock issuance and debt. In order to avoid further dilution and maintain the company’s treasury management capabilities, Strategy has decided to only sell its MSTR shares when the mNAV (modified net asset value) reaches 2.5x.
As Strategy looks ahead, it appears that they will be focusing on issuing yield-bearing perpetual preferred stocks.
Source: ambcrypto.com
