Accurate strategy In the news again, with the latest company news Bitcoin (BTC) A purchase worth more than half a billion dollars. With this latest purchase, the company now owns a whopping 444,262 BTC, which has accumulated at a total cost of around $28 billion, with an average purchase price of $62,257 per BTC. This is the seventh Monday in a row that the company has purchased Bitcoin.
but Peter Schiff He's not entirely sure what the strategy is behind MicroStrategy's buying spree. He says they are running out of money to continue buying Bitcoin.
In a direct response to MicroStrategy CEO Michael Saylor, the financial expert noted that this was the smallest purchase to date, and it was also the first time the average purchase price was higher than the current market price on the day of the announcement.
This could be a red flag in Schiff's vision, as it suggests a misalignment between the company's investments and market reality, which could indicate a riskier strategy to keep up appearances rather than focusing on solid financial fundamentals.
Although Bitcoin has performed really well since the beginning of the year, rising over 121.8%, people are starting to question MicroStrategy's approach. Some believe that the company uses a cycle of leveraging capital to finance its business Bitcoin Purchases by issuing convertible bonds and corporate bonds, securing lines of credit and selling shares.
The concern is that this could be risky. Much of MicroStrategy's money is tied to Bitcoin, so if the price of BTC drops significantly, it could put a huge dent in the company's finances and lead to a sale of the cryptocurrency itself.
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