"Boost Bitcoin Price: Strategy's Aggressive Acquisition Approach"

Michael Saylor’s Strategy Could Benefit from ‘Super Careless’ Bitcoin Buys — Expert

Key takeaways:

• Richard Byworth suggests that Michael Saylor’s Strategy could increase its Bitcoin holdings by acquiring cash-rich companies and converting their cash into Bitcoin.
• As the Bitcoin supply on exchanges dwindles, Byworth argues that Strategy should accelerate its purchases.
• An aggressive accumulation of Bitcoin would enhance Strategy’s mNAV, ultimately benefiting shareholders.

According to crypto executive Richard Byworth, Michael Saylor’s Strategy should adopt a more daring approach to purchasing Bitcoin by acquiring companies with significant cash reserves to fuel their acquisitions. By doing so, Strategy could eliminate the need for over-the-counter transactions and ramp up its Bitcoin purchases.

During a podcast on April 29, Syz Capital partner and Jan3 advisor, Richard Byworth, praised Saylor’s current strategy but raised concerns about Bitcoin reaching a point with an “illiquid supply,” where there is no Bitcoin left on exchanges or OTC desks.

“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 questioned.

He suggested an approach of “super aggressive, super careless buying,” which would have a significant impact on the market and drive the price higher. At the time of writing, Strategy holds 553,555 BTC, valued at approximately $52.48 billion, according to Saylor Tracker.

Fidelity Digital Assets reported on April 24 a decline in the Bitcoin supply on exchanges due to purchases by public companies, a trend expected to intensify in the near future. Byworth explained that Strategy’s focus should be on its mNAV (multiple of Net Asset Value) rather than the price of Bitcoin when making purchases, as it would be more beneficial to shareholders.

He emphasized the potential advantages of aggressive buying when Bitcoin becomes scarce, stating that it would significantly boost Strategy’s mNAV and make dilution more accretive. Movements in NAV premium and discount could provide insights into market sentiments and future price trends.

Byworth highlighted Japan as having many “zombie companies” with substantial cash reserves, suggesting that Strategy could follow a similar strategy to the Japanese investment firm Metaplanet by acquiring these companies and converting their cash reserves directly into Bitcoin.

On April 21, Metaplanet increased its Bitcoin holdings to over $400 million following a $28 million purchase. Byworth’s remarks come as Bitcoin currently trades below the psychological $100,000 level, which it fell below in early February.

Bitcoin's current price is $94,680, down 13.22% from its all-time high of $109,000 reached in January. Byworth’s insights shed light on potential strategies for Strategy to enhance its Bitcoin holdings and align with market trends.

Disclaimer: This article does not provide investment advice or recommendations. Readers should conduct their research before making any investment decisions, as every investment involves risks.