Crypto Assets executives: Strategy's Bitcoin (BTC) purchases should be "very casual" to drive the price.

Source: Cointelegraph Original: "Cryptocurrency executives: Strategy's Bitcoin (BTC) purchases should be 'very casual' to drive prices"

A cryptocurrency executive stated that Michael Saylor's strategy should adopt a more aggressive Bitcoin purchasing approach by using company acquisitions to fund purchases with cash reserves and stopping over-the-counter (OTC) buying.

"So far, Saylor's strategy is correct," said Richard Byworth, a partner at Syz Capital and advisor at Jan3, in an April 29 podcast.

However, Byworth considered what would happen when Bitcoin reaches the "liquidity shortage" point, at which there will be no Bitcoin available for trading on exchanges or over-the-counter trading desks.

"Should Saylor be very casual about buying Bitcoin? That is to say, buying directly instead of through over-the-counter trading platforms... and thereby significantly driving up the price," Byworth said.

"In a situation where liquidity is low, perhaps you should try making super aggressive and super casual purchases for a while, to fully impact the market and drive prices up."

According to Saylor Tracker, Strategy currently holds 553,555 BTC, valued at approximately $52.48 billion at the time of publication.

Fidelity Digital Assets announced on April 24 that the supply of Bitcoin on its exchange is decreasing due to purchases by public companies, and it expects this situation to accelerate "in the near term."

Byworth stated that companies like Strategy do not focus on the price when purchasing Bitcoin, as their main concern is the market net asset value (mNAV), which is the value of the assets held, because "this is more beneficial for shareholders."

He added that when Bitcoin no longer exists, "you can actively buy, as doing so will drive up the price and greatly increase [the] mNAV of [Strategy], which means [its] dilution will become more favorable."

Changes in NAV premiums and discounts can provide signals about market sentiment or potential future price trends.

Mr Byworth said there were "a lot of zombie companies" in Japan with large cash reserves. He suggested that Strategy could take an aggressive approach by acquiring the companies and "immediately converting cash into Bitcoin," similar to the strategy taken by Japanese investment firm Metaplanet.

"There are many companies like this in Japan, sitting on these cash flow generating businesses, which are quite boring and have a very low price-to-cash ratio," Byworth added.

On April 21, Metaplanet increased its Bitcoin holdings to over $400 million after its latest $28 million purchase.

Byworth's comments come as the price of Bitcoin falls below the psychological level of $100,000, a price that was breached in early February, widely attributed to tariffs imposed by U.S. President Donald Trump.

According to CoinMarketCap, Bitcoin is currently trading at $94,680, down 13.22% from its all-time high of $109,000 set in January.

Related articles: Bitcoin (BTC) supply indicators are nearing the "historical frenzy" zone, target price $115,000.

This article does not constitute investment advice or a recommendation. Every investment and trading decision involves risk, and readers should do their own research when making their own decisions.