Michael Saylor and the Crazy Strategy of Acquiring $84 Billion in Bitcoin
Michael Saylor, Executive Chairman of MicroStrategy, has made another significant move in the crypto world. He plans to raise up to $84 billion to increase Bitcoin holdings, even after his company recorded a loss of $4.2 billion in the first quarter of 2025.
What Happened?
This loss occurred due to changes in accounting rules that now require the value of Bitcoin to be recorded based on the current market price. This means:
If the price of Bitcoin drops, the company must record a loss.
But if it rises, the profit is only recorded when Bitcoin is sold.
Despite this, Saylor is not backing down. MicroStrategy currently holds Bitcoin worth approximately $53 billion, making it the largest institutional Bitcoin holder in the world.
MicroStrategy's Aggressive Move
To acquire more Bitcoin, the company plans to:
Sell shares worth $21 billion.
Double its debt to $42 billion.
Total funding target: $84 billion.
What is the Impact on the Market?
According to analysts from Benchmark, Mark Palmer, this strategy could trigger:
A surge in Bitcoin demand.
A significant price increase.
Providing a strategic advantage for companies like MicroStrategy.
It has been proven that MicroStrategy's stock has soared nearly 3,000% since Saylor began accumulating Bitcoin in 2020.
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Lessons for Crypto Enthusiasts
1. Long-term conviction: Despite accounting losses, Saylor remains confident that Bitcoin is the most valuable asset.
2. Accumulation strategy: Large companies are willing to incur debt and sell shares to increase Bitcoin holdings.
3. Institutional effect: Movements by large institutions can trigger a domino effect in the crypto market.
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