Imagine pouring nearly a billion dollars into an asset while your company’s share price has been absolutely hammered for half a year. Most CEOs would be hiding under the desk. Not this guy.
Last week, the company famous for turning itself into a Bitcoin holding vehicle quietly scooped up another 10,624 BTC for roughly $962.7 million. That single purchase ranks as their biggest weekly buy since the summer. And yes, they did it while the stock continues to trade like it’s allergic to good news.
The Relentless Bitcoin Bet Nobody Saw Coming (Except One Man)
Let’s be honest – most of us thought the grand experiment would slow down once reality kicked in. Interest rates rose, the stock bled out, short sellers circled like vultures. Yet here we are, watching the same company push its total Bitcoin stash to a mind-numbing 660,624 BTC. At today’s prices that’s close to $50 billion in one single asset. One. Single. Asset.
To put that in perspective, their Bitcoin pile is now worth almost three times the company’s market cap on most trading days. That’s not a treasury strategy anymore – that’s a full-blown identity crisis wrapped in orange coin.
The Numbers Don’t Lie (But They Sure Look Crazy)
Here’s the current scoreboard:
- Total Bitcoin owned: 660,624 BTC
- Average purchase price: roughly $36,000 (yes, really)
- Current unrealized gain: north of 150% on the entire position
- Reported Bitcoin yield YTD: 24.7% (take that, S&P 500)
- Stock performance last 6 months: down almost 60%
That last bullet point is what keeps analysts up at night. How can a company be absolutely crushing it on one metric while getting demolished on the only metric most Wall Street traders actually care about?
Michael Saylor’s Unbreakable Conviction
Look, I’ve followed this story for years, and I still can’t decide if the man is a prophet or just the most stubborn person on the planet. Probably both.
“We are not going to sell our Bitcoin to pay a dividend. Ever.”
– Company founder, basically every earnings call since 2021
That quote isn’t hyperbole. It’s corporate scripture at this point. While other CEOs pivot every quarter to chase the hot new narrative, this one keeps swinging the same hammer: more Bitcoin, always more Bitcoin.
And honestly? The math has worked so far. Their average cost basis remains laughably low compared to where we sit today. Every dip just looks like a 20-30% discount to a guy who plans to hold for decades.
The Cash Cushion That Buys Time
One detail that often gets buried: they’re not actually broke. Management has carefully built a war chest of about $1.44 billion in cash and cash equivalents. That’s enough runway to cover preferred dividends and operating expenses for close to two years even if the core software business completely flatlines.
Think about that for a second. They’ve engineered a financial fortress designed to withstand Bitcoin crashing 50% tomorrow without forcing a single coin onto the market. That’s not reckless – that’s borderline genius levels of capital structure planning.
The Perpetual Preferred Shares Gambit
Then there’s the new weapon nobody is talking about enough: perpetual preferred stock offerings. These aren’t your grandfather’s convertible notes. They pay a fixed dividend, have no maturity date, and give the company essentially permanent capital to keep buying Bitcoin.
Wall Street hates complexity, but income-focused funds love yield. And right now these preferreds are yielding north of 8% with what looks like ironclad collateral if things ever go south. It’s a clever way to tap investors who want Bitcoin exposure without the stomach for 80% drawdowns.
The Growing Competition Problem
Here’s where things get spicy. For years, this company owned the “corporate Bitcoin proxy” narrative. Want BTC exposure without running a wallet? Buy the stock. Simple.
That monopoly is crumbling fast.
Major banks are rolling out structured products. Spot ETFs keep sucking up billions. Even random Japanese consulting firms are copying the playbook now. The moat isn’t gone, but it’s shrinking, and the premium investors were willing to pay for “pure play” exposure is evaporating.
Short Sellers Smell Blood
Jim Chanos didn’t become famous by betting against winners. When legendary short sellers start circling, you pay attention. The bear case is straightforward: leverage plus volatility equals eventual blow-up. They point to the stock chart, the software business that barely grows, the mountain of debt taken on to buy more coins.
Fair points. All of them.
But here’s what the bears keep missing: this isn’t a normal company anymore. Normal valuation metrics stopped applying somewhere around the third or fourth billion-dollar Bitcoin purchase. Trying to value it like a SaaS business is like trying to weigh a black hole with a bathroom scale.
So… Genius or Time Bomb?
I’ve flip-flopped on this more times than I care to admit. Some days it feels like watching someone play Russian roulette with five bullets. Other days it looks like the greatest asymmetric bet in corporate history.
The truth probably sits somewhere in the messy middle. If Bitcoin goes to a million, the stock will make Enron shorts look like amateurs. If we enter another multi-year bear market and the company ever faces a real margin call scenario… well, let’s just say the headlines will be brutal.
But here’s the part that actually keeps me up at night: they’ve structured everything to survive exactly that scenario. The cash buffer, the fixed-rate debt, the preferreds – it’s all designed to buy time until the next bull cycle. That’s not blind optimism. That’s cold, calculated survival planning.
What This Means for Regular Investors
If you’re looking for a quiet 8–10% annual return with quarterly earnings that beat by two cents, stay far away. This isn’t that kind of investment anymore.
But if you believe – really believe – that Bitcoin continues its long-term adoption curve, then owning shares remains one of the most leveraged ways to express that view. Just understand you’re buying volatility with extra steps.
Personally? I own a small position and probably always will. Not because I think it’s “safe” – it’s obviously not – but because sometimes the biggest winners come wrapped in the craziest packaging. And right now, this story is about as crazy as it gets.
Love him or hate him, you can’t look away. The Bitcoin experiment continues, one billion-dollar purchase at a time.
