Key Takeaways:
- Richard Byworth, a partner at Syz Capital, suggests that Michael Saylor’s Strategy could significantly increase its Bitcoin purchases by acquiring cash-rich companies and converting their cash into Bitcoin.
- He emphasizes the need to accelerate purchases as the Bitcoin supply on exchanges continues to dwindle.
- Byworth argues that aggressively increasing Bitcoin holdings would enhance Strategy’s mNAV, ultimately benefiting shareholders.
Michael Saylor’s Strategy is encouraged to adopt a more aggressive approach to buying Bitcoin by acquiring companies to utilize their cash holdings for purchases, moving away from over-the-counter buys. According to Richard Byworth, Saylor’s strategy has been effective thus far, but there is room for improvement.
Super Aggressive Buying
Byworth poses an interesting question regarding Bitcoin’s potential point of illiquid supply, where no Bitcoin remains on crypto exchanges or OTC desks. He suggests:
“Should Saylor buy Bitcoin really carelessly? As in, not try and buy it through OTC desks…and actually just buy it with the intention of massively ramping the price.”
Byworth believes that in times of decreasing liquidity, super aggressive buying could push the price higher and serve the interests of shareholders. Currently, Strategy holds 553,555 BTC, valued at approximately $52.48 billion.
According to Fidelity Digital Assets, there has been a noticeable drop in Bitcoin supply on exchanges due to purchases by public companies, which is expected to accelerate soon. Byworth asserts that firms like Strategy should not focus on the Bitcoin price during buying, but rather on their mNAV, which reflects the value of their held assets, thus being more beneficial for shareholders.
He also highlights the presence of many zombie companies in Japan that hold significant cash reserves. Byworth proposes that Strategy could adopt an aggressive approach by acquiring these companies and converting their cash directly into Bitcoin, similar to the strategy employed by Japanese investment firm Metaplanet.
On April 21, Metaplanet boosted its Bitcoin holdings to over $400 million following a recent $28 million purchase.
Byworth’s comments come as Bitcoin trades below the $100,000 psychological threshold, currently priced at $94,680, which is a 13.22% drop from its all-time high of $109,000 reached in January. This decline has been linked to tariffs implemented by US President Donald Trump.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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