While most of the crypto world was looking for a way out due to the market crash, Michael Saylor chose to go even deeper.
Strategy (formerly MicroStrategy) just made a record by completing its 100th Bitcoin [BTC] purchase. The company bought 592 BTC for about $39.8 million on the 22nd of February.
That pushed its total holdings to a massive 717,722 BTC.
On the surface, that sounds historic. But the mood around this milestone feels different. Strategy has spent about $54.56 billion building its Bitcoin position. With an average purchase price of $76,020 per coin.
This has resulted in the company now registering nearly $7 billion in unrealized losses. Hence, instead of celebration, many investors started criticizing Saylor’s accumulation.
One of the loudest voices came from long-time Bitcoin skeptic Peter Schiff. After the announcement, Schiff argued,
“Congratulations, you finally averaged down. But in case you didn’t notice you are already down over 5% on your last purchase. So as you keep averaging down your overall losses will increase.”
Echoing similar sentiments, another user added,
“There’s a clear irony in Strategy’s accumulation: almost every time they announce a new purchase, the price moves against them. While they claim to be long-term visionaries, their short-term entry points often leave much to be desired from a timing perspective.”
Interestingly, the accumulation followed Syalor’s recent tease on “Orange Century.” Unexpectedly, what used to sound confident and hopeful now feels tired and frustrated.
Adding to the fuel, one investor recently posted his personal journey with MSTR investment, which is down 68.28% in the past year.
He added,
“Granted it’s not a large sum, but to date, it’s at rock bottom of my entire portfolio. Maybe one day that’ll change, but as of today, I can see why some advocate for #Bitcoin in cold storage.”
This coincided with Bitcoin sliding 3.79% in 24 hours to trade at $63,234.71. Meanwhile, Strategy’s stock, MSTR, was hit even harder, dropping 5.60% to a price of $123.71.
But Saylor isn’t the only giant currently underwater. On the 23rd of February, Tom Lee’s Bitmine (BMNR) mirrored the strategy, acquiring an additional 51,162 Ethereum [ETH] ($98.33 million).
Bitmine now sits on a mountain of 4.42 million ETH, but with an average cost of $3,821, that position is currently drowning in $8.4 billion worth of unrealized loss.
Much like MSTR, Bitmine’s stock is feeling the burn, falling by 4.52% to $19.22 as Ethereum itself slipped 2.59% to $1,828.64 in the past day.
Ergo, the question now isn’t about buying more Bitcoin but about who can endure the pain longer.
