Key takeaways:
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Richard Byworth says Michael Saylor’s Strategy could ramp up its Bitcoin buys by acquiring cash-rich companies and converting their cash into Bitcoin.
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He says that Strategy should consider accelerating purchases as the Bitcoin supply on exchanges continues to decline.
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Byworth argues that aggressively increasing Bitcoin holdings would boost Strategy’s mNAV, benefiting shareholders.
Michael Saylor’s Strategy should take a more aggressive approach to buying Bitcoin by acquiring companies to use their cash holdings to fund purchases and do away with over-the-counter buys, a crypto executive says.
“Saylor’s strategy so far has been the right one,” Syz Capital partner and Jan3 adviser Richard Byworth said on an April 29 podcast.
Strategy should try “super aggressive” buying
However, Byworth pondered what happens when Bitcoin BTCUSD reaches an “illiquid supply” point where no Bitcoin is left on crypto exchanges or over-the-counter (OTC) desks.
“Should Saylor buy Bitcoin really carelessly? As in, not try and buy it through OTC desks…and actually just buy it with the intention of massively ramping the price,” Byworth said.
“The point where things are getting less liquid, maybe you should try for a period going super aggressive, super careless buying, market impact all across, and push the price higher.”
Strategy currently holds 553,555 BTC, valued at approximately $52.48 billion at the time of publication, according to Saylor Tracker.
Fidelity Digital Assets said on April 24 that it has seen Bitcoin supply on exchanges dropping due to purchases by public companies, which it anticipated would accelerate “in the near future.”
Byworth said a firm like Strategy wouldn’t be concerned with the price of Bitcoin when buying it as its primary focus would be on its mNAV (multiple of Net Asset Value), the value of the assets held, as “it is much more beneficial to [its] shareholders.”
He added that when there is no more Bitcoin, “you may as well go aggressive buying, because what happens is it will just ramp the price, it will massively increase [Strategy’s] MNAV, which means [its] dilution will become much more accretive.”
Movements in the NAV premium and discount can give signals about market sentiment or potential future price movements.
Byworth said that Japan has a “large number of zombie companies” holding significant cash reserves. He proposed that Strategy could adopt an aggressive approach by acquiring these companies and “immediately converting that cash into Bitcoin,” similar to the strategy taken by Japanese investment firm Metaplanet.
“There are plenty of companies out there in Japan like that, sitting on these cash flow generative businesses that are pretty boring and have very low price-to-cash ratios,” Byworth added.
On April 21, Metaplanet increased its Bitcoin holdings to more than $400 million after its latest $28 million purchase.
Byworth’s comments come as Bitcoin trades below the psychological $100,000 price level, a threshold it fell below in early February, which has widely been attributed to the tariffs imposed by US President Donald Trump.
Bitcoin is trading at $94,680, down 13.22% from its all-time high of $109,000 reached in January, according to data from CoinMarketCap.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
