Richard Byworth suggests that Strategy should increase its Bitcoin purchases by acquiring cash-rich companies. He argues for a more aggressive approach to buying Bitcoin as supply dwindles on exchanges and believes this would enhance the company’s mNAV. Byworth also points to Japan’s cash-rich zombie companies as potential acquisition targets to fund such purchases. Bitcoin’s current price struggles add urgency to these strategies.
In a recent podcast, Richard Byworth, of Syz Capital and advisor to Jan3, stated that Michael Saylor’s company, Strategy, should dramatically increase its Bitcoin purchases. He suggests acquiring companies with substantial cash reserves and converting that cash directly into Bitcoin would be a more straightforward and beneficial approach than relying on over-the-counter buys. Byworth blames the current decline in Bitcoin availability on exchanges, hinting that this situation could be a ripe opportunity for aggressive accumulation.
Byworth endorses Saylor’s previous strategies but urges a shift toward a more reckless purchasing approach as Bitcoin supply dwindles to critical levels. He posed an intriguing question: when Bitcoin’s availability reaches a point of crisis, why not buy carelessly, thereby helping to significantly inflate the price? With Strategy currently holding about 553,555 BTC, worth around $52.48 billion, Byworth argues the focus should be on the company’s multiple of Net Asset Value (mNAV) instead of the Bitcoin purchasing price itself.
The executive argues that such escalated buying strategies would not deter shareholders as it provides a larger mNAV, leading to overall better returns. For Strategy, when Bitcoin becomes scarce, an aggressive approach to buying it would ultimately push prices higher and increase the company’s asset value significantly. This would theoretically mitigate concerns about dilution.
Moreover, Byworth highlighted the potential in Japan, where many “zombie companies” hold ample cash reserves—often in low-performing, safe investments. He believes a bold tactic would be to acquire such firms and convert their cash immediately into Bitcoin. He used Japanese investment firm Metaplanet as an example, which enhanced its Bitcoin holdings to over $400 million after a recent purchase of $28 million.
As Bitcoin struggles to maintain prices, currently at about $94,680, down considerable percentages from its peak of $109,000, Byworth’s comments seem timely. The recent price decline is often associated with various market pressures, including past tariffs imposed by US President Donald Trump. Investors are experts at spotting premiums and discounts on NAVs to gauge market sentiment.
To round up this information, it’s essential to reiterate that this article does not constitute investment advice. Trading and investing come with risks, and investors are encouraged to thoroughly conduct their research before making decisions.
