Strategy Could Own 7% of Bitcoin Supply

As each bitcoin becomes rarer, Strategy aims to concentrate an unprecedented share. Michael Saylor, its co-founder, mentions the possibility of holding up to 7% of the global bitcoin supply, or nearly 1.5 million BTC. With already more than 3% in reserve, the company no longer just invests: it builds a financial model focused on the strategic accumulation of the asset. A trajectory that redefines corporate treasury codes in the era of digital currencies.

A Quantified Ambition: Strategy Prepares Its 7% Offensive

After acquiring 21,000 bitcoins following a 2.5 billion IPO, Michael Saylor, Executive Chairman of Strategy, stated in an interview with CNBC that his company could eventually hold between “3 to 7%” of the total bitcoin supply, while specifying:

I don’t think we will get all the bitcoins […] We don’t want to own everything, we want everyone to have their share.

To date, the company holds 628,791 BTC, just over 3% of the 19.9 million bitcoins currently in circulation. A reserve valued at 72 billion dollars based on a BTC price of 114,692 dollars. If Saylor’s strategy reached its goal, that would represent 1.47 million BTC, valued at about 169 billion dollars, an unprecedented concentration for a listed company.

This massive accumulation project fits into an approach initiated in August 2020, when Strategy, then weakened by the post-COVID crisis, made a radical shift by adopting bitcoin as a reserve asset. This orientation is based on a structured acquisition mechanism, detailed by the following figures:

• 628,791 BTC currently held, making Strategy the largest corporate holder of bitcoin worldwide;

• A current valuation of 72 billion $, more than the GDP of many countries;

• 2,488% performance for the MSTR stock since the first BTC acquisition in 2020;

• A strategy supported by the regular issuance of debt, allowing Strategy to keep buying without having to sell its assets;

• A theoretical target of 7% of the total supply, equivalent to 1.47 million BTC, for a potential capitalization of 169 billion $.

The approach, initially perceived as bold, has radically changed the perception of Strategy in financial markets. Its stock, although down more than 6% to fall below 380 $, remains one of the preferred stock vehicles for investors wanting indirect exposure to bitcoin.

An Extraordinary Company and a Model with Visible Limits

During the presentation of the second-quarter results, Michael Saylor stated that even if the bitcoin price dropped 80 to 90%, the company would be able to weather the storm without selling a single coin.

A bold statement that reflects absolute confidence in the resilience of his strategy. This extreme stance, assumed by its architect, is largely based on a long-term anticipation: “we don’t want to own everything, we want everyone to have their share”, Saylor nuanced in the same interview, while maintaining the ambitious 7% goal. This communication leaves little room for doubt about Strategy’s intent to continue its accumulation, no matter the market upheavals.

The financial mechanism behind this strategy relies on leverage. The company regularly issues debt, sometimes convertible, to finance its BTC purchases. It also plans to raise another 4.2 billion dollars for this purpose.

If the bitcoin price continues to rise, this approach can continue to generate record profits like the 10 billion announced in the second quarter. However, conversely, a sharp market drop could trigger cascading effects on traditional stock markets, Strategy now being closely correlated to the crypto price.

The MSTR stock has thus become a sort of bitcoin proxy on the Nasdaq, with all the volatility and speculation risks that implies. Furthermore, some analysts, like those at Benchmark, have raised their price target to 705 dollars, while others worry about the sustainability of such a model in the long term.

This frenzied accumulation raises questions about the impact of such concentration on an asset supposed to be decentralized. If Strategy indeed reaches 7%, the company will hold more BTC than all the world governments combined. This concentration could alter market dynamics, especially in case of a liquidity crisis or strengthened regulation, as evidenced by the vote on the Genius Act in the United States. While some see it as proof of visionary commitment, others highlight the systemic risk posed by a private company monopolizing such a significant share of a global asset.