Digital asset giant Strategy has expanded its Bitcoin (BTC) holdings with a significant acquisition, purchasing $50 million worth of BTC, the company’s largest single buy since September. The coins were acquired at an average price of $102,557, bringing Strategy’s overall average purchase price to $74,079. With this addition, the company’s total Bitcoin holdings now stand at an impressive 641,692 BTC, reinforcing its position as a major institutional player in the cryptocurrency space.

Despite these strategic moves, Strategy faces mounting scrutiny from financial analysts and investors. The company’s stock has plummeted, raising concerns over liquidity and stability. Prominent venture capitalist Jason Calacanis publicly criticized the company, warning that Strategy could risk insolvency and advising potential investors to avoid its stock.

Adding to the pressure, Strategy recently received a B- credit rating from S&P Global Ratings. While the company framed this as a positive development, the Financial Times noted that the rating highlights Strategy’s heavy debt exposure and limited diversification. In a bid to retain investor confidence, the company also increased dividends on certain preferred stock offerings.

The viability of companies with heavy digital asset treasuries has come under scrutiny. The Wall Street Journal published a critical analysis questioning whether the investment strategy pioneered by Michael Saylor might be reaching its limits. Additionally, noted short-seller Jim Chanos announced that Kynikos Associates closed its anti-Saylor position profitably, reinforcing skepticism in certain investor circles.

Nevertheless, Michael Saylor has a history of orchestrating notable comebacks under market pressure. While criticism and uncertainty currently loom, it remains possible that Strategy could regain stability and continue to play a pivotal role in institutional Bitcoin investment.