Michael Seilor said that Strategy acquired bitcoins in the amount of almost $ 2 billion. This is a significant increase compared to last week, although even then the purchase was already impressive
However, Strategy was able to make this transaction only thanks to the major stages. Meanwhile, the price of bitcoin has been reduced for the past few weeks, which can lead to liquidity crisis.
Strategy continues to buy bitcoin
Since Strategy (previously Microstrategy) began to acquire bitcoins, it has become one of the largest BTC holders in the world. This strategy has completely changed the company, concentrating it on large purchases and inspiring other companies on similar steps.
Today, the head of the company Michael Sailor announced a new purchase, which significantly exceeds the previous ones in size.
A recent purchase of Bitcoin by Strategy in the amount of almost $ 2 billion is a serious step. In February, they had already made a similar deal, followed by purchases for $ 10 million and $ 500 million. The last transaction of March 24 became possible only thanks to a large -scale issue of shares. This once again confirmed the confidence of Strategy in the prospects of bitcoin.
What is the catch
Investing billions, Strategy strengthens the market trust in bitcoin. However, investors should take into account possible risks.
Firstly, bitcoin now shows weak results. Despite the recent historical maximum, cryptocurrency is experiencing the worst quarter since 2019, and its dynamics remains sluggish.
This can be a serious problem for the company. Since Strategy plays an important role in the formation of market trust, it cannot sell assets without risking the BTC price.
The company’s debts are growing rapidly, which can lead to dangerous consequences if Bitcoin continues to fall. In the worst case, the company will have to liquidate, although now it seems unlikely.
It is important to remember that these are just possible scenarios. Strategy has been in Bitcoin for almost five years for almost five years, and this strategy turned out to be very profitable. However, if it continues to increase debts by billions, confidence in success can turn into a risky game with high rates.
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Source: Cryptocurrency
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