- Strategy’s pause in its Bitcoin purchase drew criticism, ranging from its alleged weakening conviction in the asset to missing out on BTC’s Monday rally.
- One of its top officials’ recent “iPhone moment” comment on STRC also generated a mixed response from the crypto community.
Crypto market sentiment has significantly recovered as Bitcoin (BTC) touched the $80K mark on early Monday morning (UTC). However, Strategy’s (formerly MicroStrategy) announced pause in its purchases of the premier digital asset has raised doubts about whether the market is already on its way out of a bearish cycle.
No Bitcoin Purchase for Strategy This Week
On Sunday, Michael Saylor, Co-Founder and Executive Chairman of Strategy, revealed via social media that their company has skipped its Bitcoin purchases. It’s worth noting, though, that his post referred to the institution’s activities over the past seven days, from April 27 to the time of his announcement. We have yet to see whether the decision will carry over into the current week.
The momentary break means Strategy’s digital asset stash remains at 818,334 BTC, which it acquired for an aggregate sum of $61.81 billion at $75,537 per BTC. The figures account for around 4.09% of Bitcoin’s 20.02 million circulating supply.
Some members of the crypto community praised Strategy for its cautious approach in building its growing Bitcoin treasury. On the other hand, many criticized him for missing out on BTC’s bounce from a weekly low of $75K last Wednesday to over $80K today.
Peter Schiff, CEO of Schiffgold and a resident Bitcoin critic, even rubbed it in Strategy’s face.
“I guess that helps explain why Bitcoin didn’t go up over the past week,” Schiff sarcastically commented on Saylor’s post.
However, based on Strategy’s capital deployment model, such remarks may be a gross misunderstanding or misrepresentation of its Bitcoin playbook. The company has primarily utilized an At-The-Market (ATM) offering to fund its purchases. Thus, rather than focusing solely on Bitcoin’s price, it also considers whether their acquisition is synced with a favorable stock-to-BTC premium.
STRC: Strategy’s iPhone Moment
Amid mixed feedback on Strategy’s temporary suspension of its Bitcoin purchases, Phong Le, CEO of the company, boldly proclaimed that STRC is its “iPhone moment” in credit markets.
Le forecasted that hundreds of Layer-2 products will be built on top of STRC. He likened it to the way AirPods built around the iPhone platform.
Strategy, being at the center of the investing public’s attention due to its status, has received mixed responses to Le’s prediction. One side agreed that it would pave the way for scalable credit markets.
Meanwhile, others warned that the asset’s overcollateralization is reminiscent of the chain of events leading to the 2008 financial crisis. They pointed out that the growing control of Wall Street entities like Strategy is beginning to undermine Satoshi Nakamoto’s vision of Bitcoin as “freedom money” in a decentralized environment.
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