MicroStrategy Registers New $1.5B Bitcoin Purchase

MicroStrategy, the business intelligence giant led by Michael Saylor, has further cemented its position as the largest corporate holder of Bitcoin with a new purchase of $1.5 billion worth of the cryptocurrency. The company now owns a total of 439,000 BTC, a move that has significantly boosted its holdings as Bitcoin continues its bull run.

On December 16, Saylor disclosed in a regulatory filing that MicroStrategy had acquired 15,350 BTC at an average price of $100,386 per coin. This brings the company’s total Bitcoin stash to a market value exceeding $45 billion, especially as Bitcoin hit a new all-time high of $106,000. Around $18 billion of this value is unrealized profit, based on an initial investment of $27.1 billion since 2020.

Infinite Money Glitch or Ticking Time Bomb?

MicroStrategy’s approach to Bitcoin acquisition—often dubbed the “infinite money glitch”—has sparked significant debate among both traditional finance experts and the cryptocurrency community. Saylor’s plan involves using debt to finance the purchase of even more Bitcoin, with plans to accumulate $42 billion in BTC by 2028. The company has raised capital by issuing debt instruments like convertible notes, following a strategy that has been embraced by Bitcoin miners such as Marathon Digital and Riot Platforms.

While this strategy has made MicroStrategy one of the biggest private holders of Bitcoin, it’s also come under scrutiny. Critics argue that the company’s financial strategy hinges heavily on Bitcoin’s continued upward trajectory. A significant market downturn could lead to substantial losses, potentially replicating the chaos witnessed during the 2022 crypto crash. However, supporters of the plan point out that Bitcoin’s bullish momentum, combined with institutional interest and growing support from global governments, supports the notion that Bitcoin’s long-term price growth is likely to continue.

The Bitcoin Bull Thesis

MicroStrategy’s Bitcoin-heavy strategy has earned significant praise from crypto enthusiasts who see Saylor as a visionary. These supporters point to various bullish signals, including increased institutional adoption and signs that the U.S. is moving closer to creating a federal Bitcoin reserve. There is also a growing trend of sovereign nations securing Bitcoin reserves, following the election of President-elect Donald Trump, which has added fuel to the Bitcoin bullish case.

Moreover, Wall Street is increasingly showing confidence in Bitcoin, with over $114 billion invested in spot Bitcoin exchange-traded funds (ETFs) in just one year. This growing institutional interest further solidifies the belief that Bitcoin could continue to see upward momentum, providing an optimistic outlook for MicroStrategy’s Bitcoin strategy in the long term.

In the meantime, MicroStrategy’s inclusion in the prestigious Nasdaq-100 index, scheduled for December 23, will likely bring even more investor attention to the company and its Bitcoin holdings. This move could bolster the company’s stock price and provide greater liquidity for its investors, amplifying the impact of Saylor’s Bitcoin strategy. Despite the risks involved, MicroStrategy’s unwavering support for Bitcoin is becoming a defining feature of the company’s future direction, positioning it as a leader in the corporate adoption of cryptocurrencies.