Saylor's Bitcoin Accumulation Model Hits Roadblock

Michael Saylor's strategy of accumulating Bitcoin through capital raising has reached its limits, according to industry figures. Strategy, led by Saylor, recently sold another batch of BTC for $62,630.00, which drew criticism from crypto leaders. The company has sold 3,588 BTC for $216M to pay dividends on its preferred shares.

The move marks the second sale in a month after a multi-year pause and has led industry participants to see this as a turning point. Bitwise CIO Matt Hougan said the era of Strategy as the dominant Bitcoin buyer is over, comparing the current crisis to the 2021 unwinding of Grayscale's GBTC premium.

Peter Schiff stated that the bitcoin sale has fundamentally changed Strategy's business model, saying 'MSTR now has a completely different business model. Instead of selling common and preferred stock and issuing debt to buy Bitcoin, the new strategy is to sell Bitcoin to pay interest and dividends, pay off debt, buy back shares it sold, and hope that Bitcoin's price goes way up.'