- Strategy loaded up 487 Bitcoin for $49.9 million last week, increasing its holdings to 64,1692 BTC.
- Critics have cautioned investors about the company’s declining returns and BTC NAV.
No matter which direction the market is heading, Strategy (formerly MicroStrategy) has maintained its conviction in Bitcoin (BTC). The company has again opened the week with a massive purchase announcement of the premier cryptocurrency asset.
On Monday, Strategy disclosed buying 487 BTC for $49.9 million between November 3 and 9. The transactions averaged $102,557 per BTC as the asset swung between a $107K high and a $99K low. The company sourced the funds from the sale of its perpetual Strife (STRF), Stretch (STRC), Strike (STRK), and Stride (STRD) stocks for net proceeds of $50 million.
Strategy’s Bitcoin Treasury Balance
At this rate, Strategy has increased its digital asset treasury to 641,692 BTC. The latest development means the business now controls over 3.21% of Bitcoin’s 19.94 million circulating supply with a market cap of over $2.1 trillion as it reclaimed the $105K valuation.
Additionally, the figures kept the company’s BTC yield at 26.1% year-to-date (YTD). This key performance indicator (KPI) represents the percentage growth of the business’s BTC holdings relative to its outstanding shares.
So far, Strategy has already invested $47.54 billion in its Bitcoin-focused corporate playbook. The numbers translate to a dollar-cost averaging (DCA) of $74,079 per BTC, showing only a $22 increase from its reported DCA last week.
Critics Sound the Alarm
Strategy has no shortage of praise for its unwavering commitment to racking up Bitcoin regardless of market conditions. It also has plenty of critics who constantly sow FUD at every purchase announcement. Most of them can be found on the social media feeds of Strategy Executive Chairman Michael Saylor.
As usual, Saylor’s resident critic, Schiffgold founder Peter Schiff, was one of those who continued to mock Strategy. He questioned the firm’s seemingly tamed acquisitions compared to when prices were trending near Bitcoin’s all-time high of $126,198.07.
The veteran investor warned the public that the pattern suggests Strategy running out of funds. He said it could eventually force the company to sell a significant portion of its BTC holdings, contrary to Saylor’s promise that it will never sell its Bitcoin.
Other points of contention raised by the pundits were Strategy’s -11% annual return and -39% quarterly return as of writing. Furthermore, despite an mNAV (Market to Net Asset Value) of 1.24, which is a healthy sign, its BTC NAV has actually dipped to -$113.
