After twelve consecutive weeks of accumulating Bitcoin, MicroStrategy has halted its purchasing streak, marking a shift in its aggressive acquisition strategy. The company, led by Michael Saylor, had been buying Bitcoin amid a historic rally fueled in part by Donald Trump’s endorsement of digital assets and his administration’s pro-crypto policies in the early weeks of his second term. Over this period, MicroStrategy invested more than $20 billion in Bitcoin, raising its total holdings to approximately $44.7 billion—equivalent to over 2% of all Bitcoin that will ever exist.
The Tysons Corner, Virginia-based enterprise software firm has increasingly positioned itself as a leveraged Bitcoin proxy, using a combination of at-the-market stock sales, convertible debt offerings, and preferred stock issuances to finance its acquisitions. Recently, the company sold $563 million in perpetual preferred stock as part of its broader plan to raise $42 billion in capital through 2027.
Hedge funds have played a key role in this dynamic, utilizing convertible arbitrage strategies that involve buying MicroStrategy’s bonds while short-selling its shares, capitalizing on the stock’s volatility. Since the end of 2022, MicroStrategy’s stock has skyrocketed by more than 2,200%, though it recently saw a decline of around 5%, closing at $318.19 on Monday.
Meanwhile, broader market forces have also influenced the crypto landscape. Donald Trump’s decision to impose tariffs on major U.S. trading partners triggered a selloff in the cryptocurrency market, with Bitcoin experiencing a 1% drop to $95,920.
Michael Saylor previously indicated in a December interview with Bloomberg Television that the company planned to focus more on fixed-income securities in the first quarter of the year. As MicroStrategy prepares to report earnings, analysts are closely watching for updates on its financial strategy.
According to Benchmark analyst Mark Palmer, who maintains a “buy” rating on MicroStrategy stock, the company has been significantly more aggressive in capital issuance and Bitcoin purchases than initially projected. “So now the question is, will the company revise that plan one way or the other?” Palmer noted.
As the company recalibrates its strategy in response to market shifts, investors will be looking for clarity on its future moves and whether its appetite for Bitcoin accumulation will return.