#SaylorBTCPurchase
Michael Saylor and the Crazy Strategy of Acquiring Bitcoin for US$84 Billion
Michael Saylor, Executive Chairman of MicroStrategy, has made another big splash in the crypto world. He plans to raise capital of up to US$84 billion to increase Bitcoin holdings, even after his company reported a loss of US$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 current market prices. This means:
If the price of Bitcoin falls, the company is required to record a loss.
But if it rises, profits are only recorded when Bitcoin is sold.
Despite this, Saylor is not backing down. MicroStrategy currently holds Bitcoin worth about US$53 billion, making it the largest institutional Bitcoin holder in the world.
MicroStrategy's Aggressive Move
To add more Bitcoin, the company plans to:
Sell shares worth US$21 billion.
Double its debt to US$42 billion.
Total funding target: US$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.
Strategic advantages for companies like MicroStrategy.
Proven, MicroStrategy's stock has surged nearly 3,000% since Saylor began accumulating Bitcoin in 2020.
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Lessons for Crypto Enthusiasts
1. Long-term belief: Despite accounting losses, Saylor remains confident that Bitcoin is the most valuable asset.
2. Accumulation strategy: Large companies are willing to go into debt and sell shares to increase Bitcoin.
3. Institutional effect: Movements by large institutions can trigger a domino effect in the crypto market.
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