MicroStrategy has taken one of the boldest steps in bringing Bitcoin to the corporate finance world under the leadership of Michael Saylor. The company also holds 439,000 BTC. This amount makes up 2% of the total BTC supply. With this, the company’s total asset value increases to $46.92 billion.
MicroStrategy’s Game Plan
As we reported at Kriptokoin.com , MicroStrategy changed the traditional financial understanding by adopting BTC as a reserve asset. In addition, the company purchased Bitcoin with creative financial instruments such as 0-interest bonds and stock sales. In their last purchase, they raised $1.5 billion by selling 3.8 million shares. With this fund, they purchased 15,350 BTC at an average price of $100,386. Alexandre Schmidt from CoinShares said:
This strategy gave MicroStrategy a significant first-mover advantage.
However, the move comes with risks . A drop in Bitcoin value could also put MicroStrategy shares under pressure. A narrowing of the share premium could pose a challenge for the company.
Institutional Adoption of Bitcoin (BTC)
The year 2024 was a period when BTC made a big breakout. In December, BTC reached an all-time high of $107,700. The increase in institutional interest in particular triggered this rise.
Companies like Riot Platforms and Marathon Digital have also started buying Bitcoin in large amounts. Riot has increased its Bitcoin portfolio by issuing $500 million in bonds, while Marathon has issued $700 million in bonds. MicroStrategy continues to be a pioneer in this field.
Michael Saylor’s US Economic Plan and Bitcoin’s Centralization Risk
MicroStrategy’s 439,000 BTC portfolio has become a factor that calls into question Bitcoin’s decentralized nature. On the one hand, this move has made Bitcoin more legitimate for institutional investors . On the other hand, such a large asset risks market stability. Alexandre Schmidt said on this issue:
A possible selling pressure could affect liquidity and trigger price fluctuations.
Michael Saylor sees Bitcoin as an opportunity to solve the US’s $36 trillion debt. Saylor suggested that the US could buy Bitcoin by selling some of its gold reserves or by borrowing. With this strategy, the US economy could attract global capital and increase the strength of the dollar. Saylor told CNBC:
Bitcoin is the economic capital of the digital world. Bitcoin has the potential to grow 100 times.
MicroStrategy Continues Bitcoin Purchases
On December 16, Michael Saylor announced that the company has purchased an additional 15,350 BTC . They spent a total of $1.5 billion on this purchase. MicroStrategy’s BTC portfolio has now reached 439,000 BTC. The company has spent a total of $27.1 billion on BTC to date. The average purchase price is recorded at $61,725. This aggressive strategy also increases institutional confidence in Bitcoin.
Michael Saylor predicts that Bitcoin will grow by 29% annually. At this pace, Bitcoin could reach $13 million by 2045. However, this journey will depend on ETF inflows and regulatory developments. The future of Bitcoin is being shaped by big players and institutional investors like MicroStrategy. However, it is critical for individual investors to follow a long-term strategy while considering the risks.
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