Crypto Giant Drops $740M on Bitcoin Shopping Spree—Amasses 607k BTC as ATM Warnings Flash Red

Wall Street's playing catch-up while crypto whales go all-in. A major strategy just deployed $740 million to stack Bitcoin reserves to a staggering 607,000 BTC—right as ATM risk alarms start blaring.

The Bitcoin Power Play

While traditional finance frets over inflation hedges, this move screams conviction. That’s enough BTC to make a central banker sweat—or finally admit they’re late to the party.

ATM Warnings: Signal or Noise?

Market skeptics point to ATM liquidity risks, but the big players aren’t hitting pause. When institutions buy dips this hard, it’s either genius or greed—history’s still writing that verdict.

One thing’s clear: while hedge funds overpay for ‘exclusive’ research, crypto’s alpha is still written in blockchain ink. The only thing more volatile than Bitcoin? Wall Street’s FOMO.

Warning for Strategy copycats

As more companies adopt Strategy’s Bitcoin treasury playbook, some analysts are beginning to caution about the move’s potential downsides.

James Check, lead analyst at Checkonchain, warned in a July 21 post on X that firms with aggressive Bitcoin strategies may be headed for trouble. He described the risk as akin to enduring “2012 Bitcoin-grade drawdowns with gold-grade duration.”

According to him, some firms may have already peaked, with their share premiums overextended to levels that may never be regained.

If such scenarios happened, he stated that those firms would:

“Get taken over, or sell the BTC to buy back their shares.”

His concerns echo that of VanEck’s head of digital assets research, Matthew Sigel, who has previously warned that several Bitcoin-heavy firms could face risks.

In a June 16 post on X, he criticized the widespread use of at-the-market (ATM) offerings to fund Bitcoin buys.

According to Sigel, companies can profitably issue new shares when their stock trades well above the value of their underlying assets, known as net asset value (NAV). This approach allows them to raise capital more efficiently, as seen with Michael Saylor’s Strategy, which used high share prices to fund large Bitcoin purchases through stock and bond sales.

However, this approach has limits. If the stock price slips close to NAV, issuing additional shares no longer creates value. Instead, it dilutes existing shareholders and weakens the investment case.

To mitigate these risks, Sigel recommended halting ATM programs when stock trades fall below 0.95 times NAV for 10 consecutive days, prioritizing buybacks when BTC rises but share prices lag, and launching strategic reviews if NAV discounts persist.

He also advised tying executive compensation to NAV per share growth rather than BTC accumulation or share count.