MicroStrategy Doubles Down on Bitcoin With Another $1.34 Billion Bet
MicroStrategy acquires 13,390 more BTC for $1.34B, reinforcing its position as the largest corporate Bitcoin holder.
MicroStrategy has once again cemented its status as Bitcoin's most fervent corporate backer, revealing a new acquisition of 13,390 BTC—valued at $1.34 billion—this week. The purchase, made at an average price of $99,856 per coin, boosts the firm’s total Bitcoin holdings to a staggering 568,840 BTC.
This monumental reserve now accounts for approximately 2.864% of the entire circulating supply of Bitcoin, reinforcing MicroStrategy’s unique position as the single largest corporate holder of the cryptocurrency. Bitcoin is currently trading above $103,000, indicating that this latest acquisition was likely completed several days ago, prior to public disclosure.
The acquisition is part of an aggressive and highly consistent strategy led by company chairman Michael Saylor. Since pivoting to Bitcoin in September 2020, MicroStrategy has evolved from monthly to weekly purchases, with recent weeks seeing increasingly larger transactions. Just last week, the firm bought 1,895 BTC for $180.3 million. This week's acquisition surpasses that by more than sevenfold.
MicroStrategy's largest purchase to date remains its November 2024 acquisition of 55,500 BTC, worth $5.4 billion at the time. In total, the company has now invested $39.41 billion into Bitcoin, and with BTC currently hovering around $103,300, its holdings are worth approximately $58.82 billion. That puts the firm's unrealized profits at roughly $19.39 billion.
The latest purchase was financed through proceeds from the firm’s expansive $42 billion at-the-market (ATM) equity offerings, involving both common (MSTR) and preferred (STRK) stock. While the funding strategy has enabled MicroStrategy to amass one of the largest crypto portfolios in existence, it has also raised eyebrows among financial analysts and skeptics.
Peter Schiff, a long-time critic of Bitcoin, cautioned that MicroStrategy’s approach is dangerously exposed to market volatility. "When Saylor sells, small paper losses will become huge real losses," Schiff warned, suggesting that a price drop could threaten the firm's balance sheet.
Nonetheless, Michael Saylor remains unshaken. He has repeatedly affirmed that the company has no intention of liquidating any of its Bitcoin, and has even claimed he would continue buying up to a price of $1 million per BTC.
MicroStrategy’s unwavering commitment to Bitcoin is a bold experiment in corporate finance, blending visionary risk-taking with controversial financial engineering. Whether it proves prescient or precarious remains to be seen, but for now, the company shows no signs of slowing down.
