Michael Saylor, co-founder of Strategy, has announced the company’s 11th consecutive week of Bitcoin purchases, continuing a buying streak that began on April 14. In promoting Strategy and its 11th consecutive purchase, Saylor reinforced his long-term bullish stance on Bitcoin:
The most recent acquisition occurred on June 23, when Strategy purchased 245 BTC for $26 million, bringing its total holdings to an impressive 592,345 BTC, valued at over $63.6 billion. This makes Strategy the world’s largest known corporate holder of Bitcoin, surpassing the combined holdings of the top 20 competing public Bitcoin treasury companies, according to BitcoinTreasuries. This strategy involves buying consecutively each week.
Strategy’s Remarkable Gains on Bitcoin Investment
Strategy’s Bitcoin investment has yielded extraordinary returns, with the company now up over 52% on its holdings. This represents an unrealized capital gain of more than $21.8 billion, underscoring the success of Saylor’s aggressive accumulation strategy. The main factor in their success has been this strategy, especially their 11th purchase.
Analysts have debated whether Strategy’s rapid Bitcoin acquisitions could trigger a supply shock, potentially driving BTC prices higher. However, concerns persist about the sustainability of the corporate Bitcoin treasury model employed by newer companies mimicking Strategy’s approach. These firms often finance their BTC purchases through debt and equity, raising questions about their resilience during market downturns.
Concerns About Newer Bitcoin Treasury Companies
A recent report from venture capital firm Breed highlights the risks faced by newer Bitcoin treasury companies. The report predicts that only a handful of these firms will survive the next major Bitcoin price correction.
“When failures inevitably hit, the strongest players are likely to acquire distressed companies and consolidate the industry,” the authors wrote.
The report emphasized that newer treasury companies face heightened risks due to their reliance on raising capital under tougher terms and at higher leverage ratios compared to Strategy. In contrast, Strategy’s size, substantial BTC holdings, and experience navigating previous bear markets give it a significant advantage.
“Strategy maintained discipline and continued accumulating Bitcoin even through the bear market, which will be the hallmark behavior of other successful BTC treasury companies,” the report noted. This acquisition strategy will likely serve Strategy well in consecutive downturns.
Will Strategy Join the S&P 500?
Market analyst and Strategy investor Jeff Walton recently predicted that the company has a 91% chance of being added to the S&P 500 in Q2 2025. If realized, this inclusion would mark a monumental achievement for Strategy, elevating it to the ranks of the 500 largest publicly traded companies in the U.S.
Walton’s prediction is based on Strategy’s growing influence in the financial markets, its robust Bitcoin treasury, and its ability to weather economic volatility. Such an inclusion could further solidify Bitcoin’s legitimacy as an institutional asset class while boosting Strategy’s visibility among mainstream investors.
The Sustainability Debate: Can Strategy Weather Future Downturns?
While Strategy’s dominance in the Bitcoin treasury space is undeniable, concerns remain about the broader sustainability of the corporate Bitcoin accumulation model. Critics argue that companies relying heavily on debt to fund BTC purchases may struggle during prolonged bear markets, potentially triggering a wave of liquidations that could harm the market.
However, Strategy’s track record suggests it is well-positioned to endure such challenges. The company’s disciplined approach—continuing to buy Bitcoin even during downturns—has set it apart from less experienced players. As the market matures, Strategy’s leadership in the Bitcoin treasury space could serve as a blueprint for others seeking long-term success.
Conclusion
Michael Saylor’s announcement of Strategy’s 11th consecutive week of Bitcoin purchases underscores the company’s unwavering commitment to its Bitcoin-centric strategy. With over 592,000 BTC in its treasury and unrealized gains exceeding $21.8 billion, Strategy remains a dominant force in the cryptocurrency ecosystem.
While concerns persist about the sustainability of the corporate Bitcoin treasury model, Strategy’s size, experience, and disciplined approach position it as a likely survivor—and potential consolidator—of the industry during future downturns.
As analysts predict Strategy’s potential inclusion in the S&P 500, the company’s influence on both the crypto and traditional financial markets continues to grow. For now, Saylor’s vision of Bitcoin as a cornerstone of corporate treasuries appears stronger than ever, even as the debate over its long-term viability rages on.
