Michael Saylor's Strategy has spent $101 million buying Bitcoin this week, the company announced Tuesday. The purchase comes as the firm sits on a paper loss of about $12 billion — a sign it's still willing to bet big on the crypto's eventual rebound.
The latest buy
Strategy purchased the Bitcoin amid what it called "market volatility." The company didn't disclose the exact price or number of coins, only that it spent $101 million in cash. That brings its total holdings to over 226,000 Bitcoin, acquired at an average price that's well above current levels. The firm funded the buy through proceeds from its latest convertible note offering, a method it has used repeatedly over the past year.
The $12 billion hole
The paper loss is staggering. But Saylor has never wavered from his thesis: Bitcoin is a superior store of value. The company has been buying aggressively through the downturn, using debt and equity sales to keep the pipeline flowing. So far, investors have been willing to keep the tap open — Strategy's stock has held relatively steady.
What could change
The biggest risk is a sustained downturn that makes it harder to raise capital. Strategy's next earnings call is in early August. That's when we'll hear whether Saylor plans to keep buying — or finally hit pause. For now, the message is clear: the company isn't scared off by a $12 billion paper loss.
