Michael Saylor's BTC strategy company has increased its holdings of Bitcoin by nearly $1 billion. Big brother, Bitcoin experienced a rapid decline in November At 33% of the time, not only did they not sell BTC to the market, but they also raised a large amount of money and increased their holdings of Bitcoin by $1 billion. What the hell is going on here? Did you use the newly announced $1.44 billion reserve fund to make a move? No, the money is still there. So how did this money come about? The answer is four words: financing to buy coins! It can only be said that Michael Saylor is the chosen one, who was able to raise over 1 billion dollars again in the midst of a booming market!!! The $1 billion this time is mainly attributed to Strategy's mastery of the "Bitcoin flywheel" strategy and its highly aggressive financing methods, raising funds through issuing stocks. According to the latest public information, Strategy's recent round of approximately $1 billion in Bitcoin holdings was mainly raised through the following methods: 1. Stock issuance (At The Market Sales) This is its main source of funding and the key to its "flywheel" strategy. Sale of Common Stock (MSTR): Strategy utilizes its "At The Market" (ATM) stock issuance plan to sell its Class A common stock MSTR on the public market Mechanism: This mechanism allows companies to continuously issue and sell new shares at market price for a period of time without the need for a one-time large-scale public offering. Advantage: Due to the high correlation between the stock price of MSTR and the price of Bitcoin, when the price of Bitcoin rises, the stock price of MSTR also rises, allowing it to sell its stocks at a higher price and raise more funds to purchase Bitcoin with less dilution. Recent action: Strategy sold approximately $900 million worth of common stock to purchase Bitcoin. 2. Issuance of perpetual preferred stock In addition to common stock, the company also raises funds by issuing other types of equity securities: Selling perpetual preferred stock (STRD): Strategy also sold its perpetual preferred stock (code STRD), raising tens of millions of dollars in additional funds and investing them into Bitcoin purchases. How does the Bitcoin flywheel work? This ability can be summarized as a positive cycle: 1. Bitcoin is rising ⬆️： The rise in Bitcoin prices has increased the book value of the company's existing holdings. 2. MSTR stock price rises ⬆️： The market sees MSTR as a highly leveraged alternative to Bitcoin, which has driven up MSTR's stock price. 3. High priced issuance of stocks ： The company utilizes its ATM program to issue new shares at high stock prices, raising a large amount of cash at lower dilution costs. 4. Increase holdings of more Bitcoin ₿: The company will use the raised cash to purchase more Bitcoin. 5. Repeat the cycle ： The increased holdings of Bitcoin further consolidate its position as a "Bitcoin concept stock", and once the Bitcoin price rises again, the cycle will start again. Therefore, Strategy's ability to increase holdings does not come from its traditional software business profits, but from the capital market, essentially transforming the market's optimism about future Bitcoin prices into real funds to purchase more Bitcoin.