MicroStrategy continues to dominate Bitcoin acquisitions, prompting scrutiny from investors and analysts alike. The business intelligence firm, known for its significant investment in Bitcoin, is set to increase its authorized common stock, potentially altering its share structure as shareholders vote on this measure. MicroStrategy co-founder Michael Saylor, determined to expand his Bitcoin holdings, aims to acquire $3 trillion worth of the cryptocurrency, a move that has elicited skepticism from notable figures such as angel investor Jason Calacanis.
MicroStrategy’s Bitcoin strategy faces scrutiny from investors
Calacanis expressed concern about MicroStrategy’s aggressive strategy, warning that the company might disrupt the Bitcoin market. He stated that Saylor’s goal of consolidating massive amounts of Bitcoin could make the asset unattractive to new investors. With MicroStrategy’s current holdings at approximately $43.4 billion, it remains the largest corporate holder of Bitcoin, with shares quintupling in value this year alone.
The firm has significantly shifted its corporate identity since first purchasing Bitcoin in 2020. Initially dismissive of the cryptocurrency, Saylor’s perspective transformed as he began acquiring substantial amounts, starting with $250 million. Following this pivot, Saylor stepped down as CEO and assumed the role of Executive Chairman, allowing him to focus on Bitcoin acquisitions and advocacy.
MicroStrategy just bought more Bitcoin: A $1.5 billion move
In December 2024, MicroStrategy raised its profile further by gaining a spot in the Nasdaq 100 index, which analysts believe will enhance its visibility amid an influx of capital. As of December 22, MicroStrategy had bought 42,162 bitcoins for $4.16 billion recently, bringing its total holdings to 444,262 at an average purchase price of $62,257 per bitcoin. This positions the company to possibly own 4% of the world’s Bitcoin within the next decade.
Despite its aggressive strategy, MicroStrategy has faced scrutiny for trading at a 147% premium to its Bitcoin net asset value and for relying on issuing equity and debt to fund its purchasing spree. Nonetheless, analysts remain optimistic about its prospects. Bernstein recently doubled its price target for MicroStrategy’s stock to $600, projecting continued growth backed by solid demand in a favorable regulatory climate.
The current surge in Bitcoin’s value, reaching prices over $108,000, is partly linked to regulatory developments, including the introduction of spot Bitcoin ETFs. These ETFs attracted significant investment, holding over 1.1 million bitcoins collectively. The growing acceptance of crypto-friendly policies under new political leadership has further fueled the market.
Saylor has articulated that he views Bitcoin as an enduring investment, likening it to historical real estate purchases in economically favorable areas. His unwavering commitment manifests in repeated assertions that “every day is a good day to buy Bitcoin.” The corporate culture at MicroStrategy reflects this philosophy as it continues to aggressively pursue Bitcoin acquisitions, even amid warnings from skeptics.
Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.
Featured image credit: Kerem Gülen/Ideogram
