Michael Saylor has pulled out the checkbook again. Strategy, known for its obsession with Bitcoin, reported a record purchase of the first cryptocurrency. However, the joy of accumulating assets is overshadowed by frightening numbers in the 'losses' column and the company's stock crash.
A new batch of 'digital gold'
From March 2 to 8, Strategy acquired a substantial volume of Bitcoins — 17,994 BTC. The total amount of the transaction was $1.28 billion, with an average purchase price recorded at $70,946 per coin.
Now, according to the company co-founder Michael Saylor, the firm's treasury holds (or rather, 'sparkles') already 738,731 BTC. The total amount spent on this crypto army has exceeded $56 billion. The average entry price for all positions is $75,862 per Bitcoin.
Saylor's paradox: more coins — less money
It would seem that accumulating tons of Bitcoin should make the company richer, but the mathematics of the market is cruel. Due to the correction in the price of the first cryptocurrency, the current value of Strategy's reserves is estimated at only $50 billion.
In summary: the unrealized loss of the company reached a shocking $6 billion.
But this apparently does not stop Saylor. The day before the report was published, he mysteriously wrote on social media: 'The second century begins.' This refers to a hundred rounds of Bitcoin purchases — the jubilee hundred is already behind, the game continues. Meanwhile, Strategy already controls more than 3.4% of all Bitcoins that will ever exist.
Where did the money come from? The printing press
The new tranche was financed not through operational activities, but in the classic way for the company — by selling securities. In a week, Strategy raised about $1.27 billion from the sale of common and preferred shares.
This is part of a grand three-year plan: by 2027, the company intends to mobilize $84 billion exclusively for buying Bitcoin. Investors are currently participating in this venture, but enthusiasm is clearly waning.
Stocks are plummeting
While Saylor writes optimistic posts, the shareholders of Strategy are calculating their losses. The company's shares have collapsed by 71% from historical highs.
Trading on March 6 closed at $133.53. The key indicator — the net asset value (NAV) ratio — dropped to 0.99. This means that the market values the company lower than the value of its Bitcoins. Usually, such a discount indicates deep distrust from investors towards the management or the future of the strategy itself.
For comparison: according to BitcoinTreasuries, reserves in digital gold are currently held by 194 public companies. The top ten leaders include MARA, Metaplanet, Riot Platforms, and Coinbase itself, but none of them are as heavily leveraged as Strategy.
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In the shadow of Bitcoin: what is happening with Ethereum?
While public attention is focused on Saylor's Bitcoin manipulations, another giant — BitMine — is quietly increasing its positions in Ethereum.
The total asset volume of BitMine reached $10.3 billion. As of March 8, the firm's balance sheet holds:
· 4,534,563 ETH (that's 3.76% of the entire Ethereum market!);
· $1.2 billion in fiat cash;
· 195 BTC (just in case);
· venture investments of $214 million.
In the global ranking of corporate crypto investors, BitMine ranks a prestigious second, second only to Strategy itself.
Tom Lee's forecast: 'We are at the bottom, but where exactly?'
The chairman of the board of directors of BitMine, the legendary Tom Lee, believes that the market is in the final stage of the 'mini-crypto winter'. He conducted an interesting historical analysis: it turns out that the dynamics of Ethereum now frighteningly resemble the charts of the S&P 500 index from the fall of 2011 (89% correlation) and the distant 1987 (93% correlation).
If this model is to be believed, the local minimum of Ethereum will form in mid-March just below the mark of $1740.
However, Lee does not pretend to be a seer:
'No one knows where the absolute bottom of the market is. Therefore, we decided to simply accelerate the accumulation of Ethereum.'
And his words do not contradict his actions. Over the past week, BitMine acquired 60,976 ETH. This is significantly higher than usual rates (previously, the company purchased 45–50 thousand coins a week).
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P.S. We remind you that interest in Strategy's stocks is maintained not only by Bitcoin fans but also by bears. At the end of February, the volume of short positions in Strategy's shares reached $6 billion with a company capitalization of $42 billion. Investors are clearly waiting for the resolution of this saga.
