Source: Cointelegraph
Original: “Cryptocurrency Executive: Strategy's Bitcoin (BTC) Purchases Should Be 'Very Careless' to Drive Prices”
A cryptocurrency executive stated that Michael Saylor's Strategy should adopt a more aggressive Bitcoin purchasing strategy by utilizing its cash reserves to fund acquisitions and stop over-the-counter (OTC) purchases.
“So far, Saylor's strategy has been correct,” said Richard Byworth, partner at Syz Capital and advisor at Jan3, during a podcast on April 29.
However, Byworth pondered what would happen when Bitcoin reaches a point of “insufficient liquidity,” at which point there would be no Bitcoin available for trading on exchanges or OTC desks.
“Should Saylor buy Bitcoin very carelessly? That is, not through OTC desks… but rather buy directly to significantly drive up the price,” Byworth said.
“In a situation of reduced liquidity, perhaps you should try for a while to make super aggressive, super careless purchases to fully impact the market and drive prices up.”
According to Saylor Tracker, Strategy currently holds 553,555 BTC, valued at approximately $52.48 billion at the time of publication.
Fidelity Digital Assets stated on April 24 that the supply of Bitcoin on its exchange is declining due to purchases by public companies, and it expects this trend to accelerate “in the near term.”
Byworth noted that companies like Strategy do not focus on price when purchasing Bitcoin, as their main concern is the market net asset value (mNAV), which is the value of the assets held, because “this is more beneficial for shareholders.”
He added that when Bitcoin is no longer available, “you can buy aggressively because doing so will push up the price, greatly increasing [Strategy's] mNAV, which means [its] dilution will become more favorable.”
Changes in NAV premiums and discounts can provide signals about market sentiment or potential future price trends.
Byworth mentioned that Japan has “a large number of zombie companies” holding significant cash reserves. He suggested that Strategy could take an aggressive approach by acquiring these companies and “immediately converting cash into Bitcoin,” similar to the strategy employed by Japanese investment company Metaplanet.
“There are many such companies in Japan, sitting on these cash flow-generating businesses, which are quite boring and have very low price-to-cash ratios,” Byworth added.
On April 21, Metaplanet increased its Bitcoin holdings to over $400 million after its latest $28 million purchase.
Byworth's comments came as Bitcoin's trading price fell below the psychological level of $100,000, a price that broke in early February, widely attributed to tariffs imposed by U.S. President Donald Trump.
According to CoinMarketCap, Bitcoin is currently trading at $94,680, down 13.22% from its all-time high of $109,000 set in January.
Related: Bitcoin (BTC) supply metrics nearing “historic frenzy” zone, target price $115,000
This article does not constitute investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making decisions.
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