The ‘buy the top forever’ philosophy
In the world of corporate Bitcoin adoption, one phrase has become synonymous with Strategy’s approach: “buying the top forever.” This seemingly counterintuitive investment philosophy—continuing to purchase Bitcoin regardless of its current price—has become a hallmark of Strategy’s revolutionary approach to corporate treasury management and has delivered extraordinary results for shareholders.
Understanding the ‘buy the top forever’ mentality
At the core of Strategy’s Bitcoin acquisition approach is a fundamental philosophical shift in how the company views money, value, and time horizons. Executive Chairman Michael Saylor frequently states he’ll be “buying Bitcoin at the top forever,” a statement that perplexes traditional investors but reveals a profound understanding of Bitcoin’s unique properties.
This philosophy stems from a recognition that Bitcoin’s supply is mathematically capped at 21 million, creating genuine digital scarcity in a world where other assets, particularly fiat currencies, can be infinitely diluted. When an asset is truly scarce and demand continues to grow, the concept of “buying the top” becomes irrelevant over a long enough time horizon.
As of 23 April 2025, Strategy holds 538.200 Bitcoin, acquired at an average cost of USD 67,766. Despite purchasing at various price points—including many that seemed like “tops” at the time—the company has generated an impressive return of +37.52% on its Bitcoin holdings.
The mathematics of persistent accumulation
Strategy’s acquisition model is rooted in mathematical certainty rather than speculative timing. The company approaches Bitcoin acquisition with the same methodical precision it once applied to software development:
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Predictable supply curve: Bitcoin’s issuance is programmatically fixed and decreases over time through “halvings” that occur approximately every four years.
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Inelastic supply: Unlike commodities like gold, where higher prices incentivize increased production, Bitcoin’s supply remains constant regardless of price fluctuations.
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Growing demand curve: As institutional adoption increases, more capital competes for a fixed and diminishing supply of new Bitcoin.
This mathematical reality means that any price can eventually be recognized as “cheap” in retrospect, making market timing less relevant than consistent accumulation. Strategy doesn’t attempt to “buy the dip”—it simply buys continuously, whenever capital is available.
Contrasting with traditional treasury management
Traditional corporate treasury management involves significant cash holdings, short-term investments, and risk-hedging through diversification. Strategy has flipped this model on its head:
Traditional treasury management:
- Prioritizes capital preservation
- Holds significant cash reserves
- Diversifies investments to reduce volatility
- Attempts to time market cycles
Strategy’s approach:
- Focuses on long-term value appreciation
- Minimizes cash holdings
- Concentrates investments in Bitcoin
- Accumulates consistently regardless of price
This stark contrast explains why many traditional financial analysts struggle to understand Strategy’s approach. The company has abandoned conventional treasury management wisdom in favor of a completely new paradigm based on Bitcoin’s unique properties.
Capital levers powering perpetual accumulation
How does Strategy continue to fund its Bitcoin purchases? The company employs four main capital levers:
- Traditional debt: Borrowing at fixed interest rates
- Convertible debt: Issuing debt that can be converted into shares
- Equity issuance: Selling new shares in a formal, structured offering with a predetermined amount and set price
- At-the-market (ATM) offerings: Selling shares gradually into the existing market at prevailing prices with greater flexibility
While Strategy’s “buy the top forever” philosophy suggests indifference to price, their execution is more sophisticated. The company strategically times its capital-raising activities to market conditions, optimizing their approach based on:
- The multiple at which their stock trades relative to Bitcoin NAV (mNAV)
- Stock volatility (currently at %)
- Investor appetite for Bitcoin exposure
During bull markets, when their stock trades at a high mNAV and volatility is elevated, Strategy can issue convertible bonds with extremely favorable terms (even 0% interest rates) and execute ATM offerings that are highly accretive to Bitcoin per share. The company’s USD 9.26 bln in convertible debt with an average interest rate of just 0.421%% demonstrates the favorable terms they’ve secured through this approach.
Conversely, during bear markets, when mNAV typically compresses and may fall below 1.0x, their capital-raising ability becomes constrained. This explains why Strategy’s acquisition pace tends to accelerate during bull markets and decrease during bear markets, as seen during the 2022-2023 crypto winter before resuming aggressively in 2024.
The philosophical underpinnings
Strategy’s approach reflects a philosophical stance that views Bitcoin not just as an investment but as a superior form of money. This perspective sees traditional currencies as inherently weak due to unlimited supply and political manipulation, while Bitcoin represents strong money with a fixed supply and resistance to censorship.
This philosophical shift explains why Strategy has no intention of “taking profits” by converting Bitcoin back to fiat currency. From their perspective, selling Bitcoin for dollars would be exchanging strong money for weak money—a fundamentally irrational act.
The flywheel effect and market dynamics
Strategy’s “buy forever” approach creates a powerful flywheel effect that accelerates over time:
- Strategy raises capital through one of its financing mechanisms
- The company purchases more Bitcoin with this capital
- Bitcoin’s price appreciates as supply diminishes relative to demand
- Strategy’s market capitalization increases
- This increased market cap improves Strategy’s ability to raise capital on favorable terms
- The cycle repeats, compounding Bitcoin holdings over time
This self-reinforcing cycle explains why Strategy has accumulated 2.56%% of the total Bitcoin supply with a clear path to continue expanding their position.
However, this flywheel doesn’t operate at constant speed. It accelerates dramatically during Bitcoin bull markets when Strategy’s stock trades at a high multiple to its Bitcoin holdings and volatility creates attractive conditions for financial engineering. During these periods, Strategy can execute their “buy the top” strategy most effectively.
During bear markets, when their stock’s multiple to Bitcoin NAV (mNAV) compresses and may even fall below 1.0x, the flywheel slows as capital-raising becomes less efficient. This market-dependent cadence doesn’t contradict their “buy forever” philosophy—it simply reflects the optimal execution of their strategy across market cycles.
Criticisms and counterarguments
Critics argue that Strategy’s approach is unsustainable and will eventually lead to a capital crunch if Bitcoin prices decline significantly. However, the company’s conservative leverage ratio of approximately (debt and preferred stock to Bitcoin NAV) gives them significant financial flexibility.
Others suggest that Bitcoin’s volatility makes this approach too risky for corporate treasury management. Strategy counters that volatility is a feature, not a bug—it’s what enables their convertible bonds to be structured with 0% interest rates and creates opportunities for accretive financial engineering.
Looking forward: The future of perpetual accumulation
Strategy shows no signs of deviating from their “buy forever” approach. Their goal is to continue accumulating Bitcoin at whatever the market price happens to be, funded through increasingly sophisticated capital market operations.
As Bitcoin adoption continues to grow and more institutions seek exposure, Strategy’s first-mover advantage and accumulation expertise position them to maintain their leadership. Their target of a 6-10% annual increase in Bitcoin yield suggests they have a clear roadmap for continued acquisition regardless of price.
Conclusion: Redefining corporate treasury management
Strategy has fundamentally redefined what corporate treasury management can look like in the digital age. By embracing the “buy the top forever” philosophy, they’ve created a new paradigm that challenges traditional financial wisdom.
For investors, Strategy offers a unique vehicle for Bitcoin exposure—one that actively works to increase Bitcoin per share through financial engineering rather than merely tracking Bitcoin’s price movements. Their approach recognizes that in a world of mathematical scarcity, consistent accumulation trumps market timing, even if the execution of that strategy varies with market conditions.
The genius of Strategy’s model is in its adaptability across market cycles. While they maintain the philosophy of “buying the top forever,” they implement this vision most aggressively when market conditions are optimal—typically when Bitcoin prices are rising and their stock trades at a premium. This counter-intuitive approach—accelerating purchases during bull markets and decelerating during bear markets—has proven remarkably effective at building Bitcoin holdings per share.
As other corporations gradually wake up to Bitcoin’s potential as a treasury asset, Strategy’s first-mover advantage, financial engineering expertise, and market-responsive acquisition approach make them nearly impossible to catch. Their willingness to “buy the top forever” isn’t just a catchy phrase—it’s the cornerstone of a revolutionary approach to corporate finance that continues to deliver exceptional results for shareholders.