Dogecoin Creator Takes Aim at Strategy’s High-Cost Bitcoin Purchase

TLDR

• Billy Markus, the Dogecoin co-founder, criticized Strategy for purchasing Bitcoin at high prices during volatile market conditions.
• Strategy recently acquired 1,142 Bitcoin for approximately $90 million, raising its total holdings to 714,644 BTC.
• Despite Bitcoin trading below its average acquisition price, Strategy is facing over $5 billion in unrealized losses.
• Strategy financed its Bitcoin purchase by selling 616,715 MSTR shares, generating about $89.5 million.
• Company leadership, including Michael Saylor, has reaffirmed its commitment to continue accumulating Bitcoin, despite market volatility.

Dogecoin co-founder Billy Markus has criticized Strategy’s latest Bitcoin purchase, questioning the timing amid rising losses. His comments came shortly after the company revealed another Bitcoin acquisition, adding to its growing portfolio. Strategy’s actions have sparked debate about its Bitcoin investment strategy, particularly given its ongoing unrealized losses.

Dogecoin Founder Questions Bitcoin Purchase at High Prices

Billy Markus, known online as Shibetoshi Nakamoto, responded sarcastically to Strategy’s announcement of its recent Bitcoin acquisition. He remarked that it “took talent” to buy Bitcoin at such high prices, especially considering the current market conditions. The comment quickly gained traction on social media, highlighting growing skepticism around the company’s strategy.

Strategy, led by Michael Saylor, has been aggressively accumulating Bitcoin, despite the digital asset’s price fluctuations. The company purchased 1,142 Bitcoin for approximately $90 million, paying an average price of $78,815 per coin. This acquisition increased its total Bitcoin holdings to 714,644 BTC, representing a total investment of roughly $54.35 billion.

Strategy Faces Pressure from Bitcoin Losses

Despite its ongoing investment in Bitcoin, Strategy is under pressure due to significant unrealized losses. Currently, the company’s Bitcoin portfolio is showing a loss of over $5 billion. The latest purchase adds to its mounting financial burden, with Bitcoin trading below its average acquisition price.

The firm financed its Bitcoin purchase through the sale of 616,715 MSTR shares, generating around $89.5 million. This move raised questions among analysts, as the company’s stock has mirrored Bitcoin’s price swings. Strategy’s stock opened at $128, down more than 5% from the previous week, following Bitcoin’s inability to hold its recent gains.

Strategy’s Commitment to Accumulating Bitcoin

Despite the mounting losses, Strategy has reiterated its commitment to its Bitcoin acquisition strategy. CEO Phong Le emphasized during an earnings call that the company would only consider liquidating its Bitcoin holdings if the price fell to $8,000 and remained at that level for five consecutive years. Both Le and Michael Saylor have insisted that the company plans to continue its Bitcoin purchases, regardless of current market conditions.

As of now, Bitcoin is trading at around $69,505, down approximately 2.1% in the past 24 hours. Despite these losses, Strategy remains determined to hold its Bitcoin portfolio, with no plans for a sell-off in the near future.

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