Strategy Plans More Bitcoin Buys, Citing Its 2022 Bear Market Playbook

• Strategy keeps buying Bitcoin despite a sharp market downturn and rising risks.
• Saylor insists the firm’s long-term BTC conviction remains firm amid index pressures.
• Schiff warns a major BTC crash could push Strategy’s stock far below its real value.

Strategy, previously known as MicroStrategy, has reaffirmed that it will keep buying Bitcoin despite growing concerns of a sustained bear market. The company released a note on X hinting that its accumulation plan will continue even as Bitcoin’s decline raises the risk of its vast holdings slipping below cost. The message referenced the 2022 crypto winter, when its average cost basis was $30,000 while Bitcoin traded near $16,000.

The company opted to increase its presence at that time rather than decreasing exposure. It accumulated substantial unrealized losses but kept on purchasing. The move defined the company as a long-term holder of Bitcoin. According to the latest update, Strategy plans to pursue the same course this time around, irrespective of the pressure on the short-term markets.

Strategy Accelerates Bitcoin Purchases Despite Steep Market Decline

Its recent activity shows such an attitude. Strategy has been purchasing Bitcoin on a weekly basis throughout the month as the asset fell nearly 24%. The company bought 8,178 BTC last week, which is the most significant purchase since July. This addition brings the total to 649,870 BTC at an average cost of $74,433. Such purchases are made although Bitcoin only trades slightly above $83,000.

This puts the company at another breakeven point. Market veteran Peter Brandt cautioned that Bitcoin might drop to around $58,000 in case bearish markets emerge. This would take the company into an even more unrealized losses situation than it had experienced in the 2022 downturn.

Michael Saylor, however, is not that negative regarding the direction of the company. He declares that Strategy firmly believes in Bitcoin, even though the company may be excluded from leading MSCI indices. He claimed that index classifications are not the purpose of the company. He also stated that the mission and long-term strategy of the firm will not change due to any external pressure.

Also Read: Michael Saylor Defends Strategy Inc as Bitcoin-Backed Finance Firm Faces Index Scrutiny

Schiff Challenges Saylor’s Claims and Warns of Severe Downside Risk

Criticism came quickly. Bitcoin critic Peter Schiff criticized a recent statement by Saylor that Strategy is indestructible and would execute during an 80% to 90% drop in the value of Bitcoin. Such a claim is unrealistic, said Schiff.

He noted that shareholders could not bear the loss of 90% of their investment. He also cautioned that a significant Bitcoin crash would probably cause the Strategy stock to be well below its adjusted net asset value, which would increase the losses.

Schiff has been criticizing the company over the years. He earlier referred to the business structure of Strategy as a scam and said that it would ultimately collapse. In his most recent remarks, he stated that he upheld the latter, stating that the company is overreliant on Bitcoin, and this puts the organization at a severe risk of downside.

The aggressive accumulation plan of the company is another significant test as the market becomes weaker. The company has adhered to the long-term vision it has as it faces criticism regarding the extent to which it can absorb volatility.

Also Read: Bitcoin Selloff Intensifies With $2B Flushout as Traders Eye $70K Revisit