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MicroStrategy’s Risky Bet: $2.1 Billion More in Bitcoin Amid Market Volatility Concerns
- MicroStrategy has added another US $2.1b to their Bitcoin portfolio.
- The company has now purchased BTC on five consecutive Mondays, bringing their holdings to over 420k BTC, worth over US $40b.
- The company’s average buy price has risen to nearly US $60k, with plans to raise US $42b by 2027 to continue their buying frenzy.
- Despite falling 7.5% today, MicroStrategy’s stock has grown a hefty 433% since January 2024.
You wouldn’t believe it – Michael Saylor and MicroStrategy have purchased some Bitcoin.
The Bitcoin maximalist to end all Bitcoin maximalists hasn’t slowed down even as BTC surged past USD $100k (AU $155k).
Instead, they’ve doubled down on their investment policy (which is quite simple: Buy Bitcoin) and added another US $2.1b (AU $3.26b) to their portfolio.
This makes it five Mondays in a row that MicroStrategy has purchased Bitcoin, making it almost seem like they’ve set up a dollar-cost average strategy and taken their hands off the keyboard.
The sale brings Saylor and Co’s holdings to 423,650 Bitcoin, worth over US $40b (AU $62).
Related: US Bitcoin ETF Holdings Overtake Satoshi’s Stash as World’s Biggest at 1.1M
Saylor Plans to Double Bitcoin Holdings Over Next Three Years
MicroStrategy has maintained a strong bond with Bitcoin even during the tough crypto winter of 2022-23.
But the team has ramped up its purchases over the past six weeks since Donald Trump was elected, buying 100k BTC in the span of a fortnight.
It wasn’t so long ago that the company’s average buy price was in the US $30,000s – a number that has ballooned to nearly US $60k (AU $93k).
And the team shows no sign of slowing down despite Bitcoin’s sky-high price, with Saylor announcing plans to raise US $42b by 2027 to… you guessed it, buy Bitcoin.
All-in on Bitcoin: Genius or Risky?
We all know Saylor’s stance on BTC – but not everybody is convinced it’s the right play.
Research analyst at Presto Research, Min Jung, told Bloomberg the company’s heavy reliance on Bitcoin could spell disaster for shareholders if the bull run eases.
While effective during a bull market, this strategy’s sustainability depends heavily on continued Bitcoin price appreciation.
Research analyst at Presto Research, Min Jung MicroStrategy’s stock MSTR has plummeted 7.5% in trading today, bringing its price to around US $365 (AU $566).
Despite the short-term stumble, MSTR has increased a whopping 433% since the start of 2024 – so investors won’t be too upset for now.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
