As Bitcoin surged past the psychological barrier of $100,000 last week, Michael Saylor’s firm, Strategy, seized the opportunity to significantly expand its holdings. The company, known for its aggressive Bitcoin acquisition strategy, revealed the purchase of 13,390 BTC for $1.34 billion between May 5 and May 11, according to its latest filing with the US Securities and Exchange Commission.
The move not only increased Strategy’s Bitcoin reserves by 2.4% but also helped the firm surpass its previous Bitcoin yield target for 2025. While celebrations are underway within the Strategy camp, critics have not held back in voicing concern over the sustainability of such large-scale purchases, especially at soaring price levels.
$1.34 Billion Purchase at All-Time Highs
Strategy’s recent acquisition brings its total Bitcoin holdings to a massive 568,840 BTC. The firm has spent approximately $39.4 billion in total, with an average purchase price of $69,287 per coin. The latest batch of 13,390 coins was acquired at an average cost of $99,856 — nearly touching Bitcoin’s new high.
The purchase came just as Bitcoin reclaimed the $100,000 mark on May 8, a level long seen as a major psychological and technical resistance. Saylor’s bold move signals his continued confidence in Bitcoin as a long-term store of value despite concerns about potential price corrections.
This latest investment not only strengthens Strategy’s position as one of the largest corporate holders of Bitcoin globally, but it also highlights the firm’s unwavering commitment to its Bitcoin-centric treasury model.
Yield Target Surpassed — and Raised Again
The acquisition appears to have paid off in more ways than one. Strategy has now achieved a 15.5% Bitcoin yield — a metric that reflects the percentage change in the ratio between its BTC holdings and assumed diluted shares. This surpasses the firm’s original 2025 target of 15%, which was set following a 74% yield in 2024.
In a May 12 update on social media platform X, Saylor announced the milestone and confirmed that the target has now been raised to 25% for the rest of 2025. The company appears determined to maintain its lead in the corporate crypto investment space.
However, this aggressive yield-focused approach has raised eyebrows even among crypto industry veterans, who question whether the strategy is scalable as market prices continue to climb.
Critics Warn of Overexposure Risk
Among the most vocal critics is gold advocate and long-time Bitcoin sceptic Peter Schiff. Responding to Saylor’s announcement, Schiff pointed out the risks of Strategy pushing its average cost above $70,000 per BTC. He warned that a significant drop in Bitcoin’s price could leave the firm sitting on heavy unrealised losses that may become “huge real losses” if a sell-off were to occur.
Schiff also questioned the scale of borrowing involved in Strategy’s purchases. His remarks followed a recent Strategy announcement stating plans to double its capital raise to $84 billion, evenly split between equity and fixed-income offerings to fund further Bitcoin acquisitions.
While Schiff’s predictions have historically missed the mark, his concerns echo a broader debate over whether institutional Bitcoin investment at such scale could lead to overexposure in a highly volatile market.
Coinbase and Others Take a Different Path
Interestingly, not all crypto firms are following in Strategy’s footsteps. According to Bloomberg, Coinbase, one of the world’s largest cryptocurrency exchanges, has considered adopting a similar strategy but ultimately rejected the idea multiple times.
This divergence in approach highlights the ongoing divide within the industry about the best way to engage with Bitcoin. While Saylor’s Strategy is doubling down, others are opting for a more cautious and diversified approach.
As Bitcoin continues to push into uncharted territory, all eyes will remain on Strategy’s next move. Whether this bold strategy continues to pay dividends or meets resistance in a volatile market remains to be seen.
