Bitcoin Reaches $122,000: Strategy Reinforces Its Position With $740M
Michael Saylor has never held his tongue nor kept a timid wallet. When he promises bitcoin, he buys. And quickly. Barely had the opening tweet been published when the orchestra began: 6,220 BTC absorbed in the midst of a bullish euphoria, with surgical calm. Behind the scenes, this is not just a purchase — it is a signal to the market, a new show of strength telling a different story: the Strategy model is running at full speed.
In Brief
- Strategy buys 6,220 BTC for 740 million dollars, at an average price of $118,940.
- The company now holds 607,770 bitcoins, representing 3% of the total ever mined.
- The operation is financed by sales of common and preferred shares, with no direct cash outflow.
- MSTR’s market capitalization exceeds the real value of its BTC holdings by 70%.
A finely tuned buyback for a superstar bitcoin
After Saylor’s purchase anticipation, everything went very fast. On July 20, Strategy filed with the SEC an 8-K form confirming the acquisition of 6,220 bitcoins, for 739.8 million dollars. Average price: $118,940 per BTC. The operation pushes the company’s portfolio to 607,770 BTC, for a total invested of 43.6 billion dollars. And this, while bitcoin flirted with $122,000, before falling back to around 118,000$.
This offensive is not an isolated flash in the pan. Since April, Strategy has been buying every month like filling an attic before winter. In July alone: 10,455 BTC accumulated. In June: 17,075 BTC. A well-oiled mechanism, piloted by a more convinced Saylor than ever.
This behavior fits within a long-term vision of bitcoin as a reserve asset. Strategy does not act like a speculative fund seeking to sell at the highest point. It accumulates continuously, according to a strategy publicly announced since 2020.
The great art of financing oneself without ever emptying the pockets
But where does the money come from? Not from the cash registers. Strategy finances its purchases with a complex play of issuance of shares and convertible bonds. For this transaction, the company raised 736.4 million dollars through the sale of 1.63 million MSTR shares. At the same time, it sold STRK, STRF, and STRD preferred shares for a few additional million dollars.
This strategy is part of a “42/42” plan aiming to raise 84 billion dollars by 2027 to strengthen its exposure to bitcoin. The method relies on zero-coupon bonds, that is, debts that pay no interest but whose value increases at maturity. A form of arbitrage where the rise in BTC covers the cost of the raised capital.
But this engineering has its downsides. In March, a 30% drop in bitcoin resulted in nearly 5.9 billion dollars of unrealized losses for Strategy. A slide that temporarily caused the MSTR share price to fall. This is the downside of a structure entirely dependent on the price of the queen of cryptos.
Investing in a flagship crypto or in a promise of exposure?
Here lies the problem. The market capitalization of Strategy (MSTR) has reached 105 billion dollars, while its BTC are worth about 62.6 billion. In other words, each dollar invested in MSTR only gets you 0.59$ of bitcoin.
This 70% premium reflects enthusiasm for Saylor’s strategy, but also raises questions about valuation coherence. Analysts mention a Nasdaq-100 effect, where index funds mechanically buy shares, inflating prices regardless of fundamentals.
Meanwhile, Strategy publishes proprietary indicators like the Bitcoin yield, which measures the evolution of the number of BTC per share issued. But the more shares issued, the more the ratio can artificially inflate. This creates the illusion of growing performance, even if the real share of bitcoin per share decreases.
Key figures of a high-leverage strategy:
- 607,770 BTC in Strategy’s portfolio, that is 3% of the total supply;
- 739.8 million dollars invested in one week, at $118,940 per unit;
- MSTR valuation: 105 billion dollars, 70% above the real value of the BTC held;
- BTC yield target (2025): 25%. Currently: 20.8%;
- 10,455 BTC purchased by Strategy since the beginning of July.
Bitcoin shines, but some observers are divided about what comes next. Experts expect a new rise towards 135,000$, others fear a severe correction linked to macroeconomic uncertainties. The flagship crypto continues to captivate, but the next chapter is yet to be written.
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.