MicroStrategy, one of the leading business intelligence companies, has grown its Bitcoin reserves considerably by buying another 22,048 BTC for about $1.9 billion. MicroStrategy acquired this through equity sales and the issuance of preferred stock between March 24 and March 30, 2025. MicroStrategy’s overall Bitcoin reserves now stand at over 528,000 coins, solidifying its ranking as the largest corporate Bitcoin holder.
Its aggressive strategy of hoarding has been especially prominent since October 2024, when it doubled its Bitcoin inventory from 252,200 coins as of September 30 to 528,185 coins as of March 30. This quick growth was made possible by issuing 3.6 million common shares receiving net proceeds of $1.2 billion, and offering 8.5 million shares of 10% Strife preferred stock at $85 per share, bringing in another $711 million after the payment of underwriting discounts and commissions.
Despite such a massive investment, MicroStrategy’s paper gains have eroded following the fall in the market price of Bitcoin. Having hit a record high of around $107,000 towards the end of January, the price of Bitcoin has dropped to around $82,000. With its average purchase cost being around $67,500 per Bitcoin, this decline has affected the value of its holdings.
As of March 31, 2025, MicroStrategy’s market capitalization is about $72 billion with $10 billion of debt and preferred stock outstanding. The current value of its Bitcoin holdings is about $43 billion. This valuation indicates that the company’s stock is selling at a premium compared to the value of its Bitcoin holdings.
Industry commentators have questioned the viability of MicroStrategy’s strategy, observing that its shares can be a pricey way to get exposure to Bitcoin relative to exchange-traded funds (ETFs) such as the iShares Bitcoin Trust, which are priced nearer the worth of their backing assets. Further, the new Strife preferred stock issued at issuance has a current yield of 10.75%, representing a potentially more appealing investment for those looking to gain exposure to MicroStrategy’s financial products.
MicroStrategy Executive Chairman Michael Saylor is also a strong proponent of Bitcoin, frequently speaking to its store of value as a better option than traditional assets. The firm, under Saylor’s command, has made regular use of several financial products, such as equity and debt issues, to purchase its Bitcoin holdings.
As MicroStrategy forges on in the fluctuating cryptocurrency world, its aggressive investment strategy reveals the company’s dedication to Bitcoin as a mainstay of its corporate treasury plan. However, that strategy also exposes the company to inherent vulnerabilities and volatility in the digital currency market.
