MicroStrategy Continues Bitcoin Acquisitions
Michael Saylor, co-founder of MicroStrategy, announced that the company has purchased Bitcoin (BTC) for the 11th week in a row, a trend that started back on April 14th.
“I hope they buy more in 21 years,” Saylor shared with his 4.4 million followers on social media. Interestingly, he gained about a million new followers last year.
In its latest move, the company bought 245 BTC for approximately $26 million on June 23, bringing its total Bitcoin holdings to 592,345 BTC, which is valued at over $63.6 billion.
MicroStrategy’s Bitcoin Treasury stands as the largest for any public company. In fact, it holds more than twice the amount of Bitcoin combined that the top 20 other Bitcoin finance companies possess.
There’s a lot of discussion among analysts about whether this rapid accumulation might lead to a supply shock, potentially driving BTC prices up.
Conversely, some market participants are questioning the durability of MicroStrategy’s financial model for acquiring Bitcoin, particularly its use of debt and equity.
The Financial Landscape
Recently, it has been noted that only a small number of Bitcoin financing companies are likely to survive downturns in Bitcoin prices. A report highlighted the risks in the current venture capital landscape.
The report suggests that as weaker companies inevitably fail, the stronger ones may look to acquire them and consolidate the market.
Moreover, newer financial firms are facing challenges as they must secure funding under tighter conditions and at higher leverage than those employed by MicroStrategy.
Nonetheless, the report indicates that MicroStrategy is well-positioned to weather the next significant market downturn, owing to its size and substantial Bitcoin holdings.
The company has shown discipline by continuously acquiring Bitcoin even during market lows.
Market analyst Jeff Walton recently estimated there’s a 91% chance that MicroStrategy will be included in the S&P 500 by the second quarter of 2025.
This article doesn’t provide investment advice. Readers should independently research and evaluate risks before making financial decisions.
