potential acquisition of up to 7% of the total bitcoin supply suggested by Michael Saylor
MicroStrategy's Bitcoin Bet Continues Amid Market Volatility
MicroStrategy, the world's largest corporate holder of Bitcoin, is maintaining its position as a major player in the cryptocurrency market. The company, which started buying Bitcoin in 2020, currently holds 628,791 bitcoins, valued at approximately $72 billion.
The company's co-founder, Michael Saylor, has been a vocal advocate for Bitcoin, calling it the supreme asset and urging other companies to follow suit. Saylor predicts that MicroStrategy could own up to 7% of the total Bitcoin supply in the future, which would amount to 1.47 million BTC, currently valued at about $169 billion.
Despite the price drop, MicroStrategy's stock has seen significant growth. Since its first Bitcoin purchase in August 2020, the company's stock is up over 2,488%. This growth has continued in 2025, with the company achieving a year-to-date Bitcoin yield of 25%, resulting in a $13.2 billion gain so far this year.
MicroStrategy's strategy revolves around maintaining its position as the largest corporate holder of Bitcoin while implementing a Bitcoin Treasury approach aimed at generating significant yield. The company issues debt to fund its Bitcoin purchases and has been wrapping its Bitcoin assets into securities to appeal to a large capital base, offering premium returns and yields.
However, MicroStrategy's Bitcoin treasury plan is not without risks. The company's large Bitcoin holdings expose it to crypto market downturns, as Bitcoin's price fluctuations can significantly impact MicroStrategy's balance sheet and earnings. Additionally, heavy reliance on issuing shares or debt to finance Bitcoin purchases might dilute shareholders or increase leverage risk.
MicroStrategy's CEO, Michael Saylor, has indicated a shift in acquisition tactics. The company will no longer continuously issue shares to buy more Bitcoin unless its share price trades at 2.5 times the net asset value (NAV) of its Bitcoin holdings. Currently, shares trade at a lower multiple (~1.8 times NAV), suggesting Bitcoin purchases may slow down, potentially impacting Bitcoin’s price due to the absence of MicroStrategy’s prior heavy buying activity.
Despite these risks, MicroStrategy continues to be bullish on Bitcoin. The company is aiming to optimize its capital structure and scalable Bitcoin yield generation through various financial instruments, including preferred stocks and debt markets worth trillions. However, potential stalling of Bitcoin acquisitions if market conditions for its stock do not align with management’s criteria remains a concern.
As of mid-2025, MicroStrategy's share price fell more than 6% in Friday trading, trading below $380 for the first time since early July. With only 19,900,346 Bitcoin mined so far, MicroStrategy's large Bitcoin holdings make it a key player in the cryptocurrency market.
[1] MicroStrategy's 2025 Bitcoin Yield and Financial Strategies (Company Press Release) [2] MicroStrategy's Shift in Bitcoin Acquisition Tactics (Financial Times) [3] Risks Associated with MicroStrategy's Bitcoin Treasury Plan (Investopedia)
[1] MicroStrategy, led by CEO Michael Saylor, continues to assert its dominance in the cryptocurrency market, holding 628,791 bitcoins, valued at about $72 billion, making it the world's largest corporate holder of Bitcoin.
[2] Saylor predicts MicroStrategy could own up to 7% of the total Bitcoin supply, a staggering 1.47 million BTC currently valued at $169 billion, indicating a strong faith in the digital asset.
[3] The company's Bitcoin Treasury approach, which includes issuing debt and converting Bitcoin into securities, has been instrumental in generating a year-to-date Bitcoin yield of 25%.
[4] However, MicroStrategy's large Bitcoin holdings expose it to crypto market downturns, potentially impacting its balance sheet and earnings, and heavy reliance on issuing shares or debt for Bitcoin purchases may dilute shareholders or increase leverage risk.
[5] Despite these risks, MicroStrategy plans to optimize its capital structure and scalable Bitcoin yield generation through various financial instruments, emphasizing a bullish stance on Bitcoin and cryptocurrency in the broader finance, business, and technology landscape.
