There’s a saying in the crypto world: the number of Bitcoins you can buy when you first enter the market is when you have the most Bitcoins. I checked my own wallet and asked friends around me. The more people play with Bitcoin, the fewer they have; some even no longer have a single Bitcoin.
Unlike retail investors, MicroStrategy continuously raises funds. Hoarding Bitcoin regardless of the peaks and troughs of the cycle. It’s about buying and buying consistently. Looking at the long term, the price growth of Bitcoin is incalculable. This is an investment with a very high certainty of return. Moreover, its compound growth over long periods is quite remarkable. Certainty thinking, long-term thinking, and delayed gratification are concepts that retail investors need to seriously consider and learn!
As Bitcoin demonstrates a robust upward momentum recently, it is necessary to pay attention to MicroStrategy, a high-leverage investment target that is highly linked to the long-term bullish logic of Bitcoin. The stock name of the U.S. listed company is MSTR.
The relationship between MicroStrategy's stock price and Bitcoin lies in the fact that when MicroStrategy finances to buy Bitcoin, it is related to the stock price. There are two paths: one is to issue more stocks to exchange for cash to buy, and the other is to issue bonds to buy. The simplest explanation is that issuing more stocks raises funds; the higher the stock price, the easier it is to raise money, allowing for more Bitcoin purchases. This is also related to allowing bondholders to convert bonds to stocks for repayment, meaning they can sell the stocks in the market without incurring losses and do not need to sell Bitcoin to repay debts. Thus, the higher MicroStrategy's stock price, the lower the risk of having to sell its held Bitcoins, which means more money to buy Bitcoin, creating a cyclical loop.
MicroStrategy simply continues to buy Bitcoin, and its market capitalization has surpassed that of Binance. In fact, MicroStrategy only needs three employees: a CEO, responsible for boasting about Bitcoin online; a CFO, responsible for issuing stocks to buy Bitcoin; and a CTO, pretending to develop commercial software. Meanwhile, Binance needs to constantly adjust its operational strategy to cater to the market, continuously hire to meet various business needs, and engage in various activities just to barely keep up with MicroStrategy's market capitalization.
MicroStrategy's speed of accumulating Bitcoin in recent months is astonishing. The company held about 386,700 Bitcoins at the beginning of the year, and by April 27, 2025, MicroStrategy holds approximately 553,555 Bitcoins, with a total market value of about $52 billion and an average price of $68,459. This remarkable growth indicates that it has adopted a clear and well-thought-out strategy, aiming to position itself ahead of potential breakout trends.
Today, MicroStrategy is not only the world's largest corporate holder of Bitcoin but also a core participant in this bull market, potentially redefining the landscape of the crypto market. While accurately predicting market trends is unrealistic, we can make reasonable inferences based on MicroStrategy's current Bitcoin accumulation speed and Bitcoin cycle patterns. At the current pace, by the end of 2025, MicroStrategy's Bitcoin reserves could reach between 700,000 and 800,000 Bitcoins. Assuming Bitcoin rises to $150,000 in this cycle, which is the peak level generally anticipated by the market, and MicroStrategy's stock price maintains a price-to-book ratio premium of 2.5 to 3 times, historically peaking at 3.4 times, its target price may fall within the range of $1,200 to $1,600.
This calculation indicates that MicroStrategy's upside potential possesses a significant advantage over Bitcoin, especially against the backdrop of sustained strength in Bitcoin. Of course, this prediction depends on the overall bullish premise of the market, but even in more conservative scenarios, MicroStrategy may still exhibit returns superior to Bitcoin, albeit with greater volatility.
Over the past three years, investing $10 daily in Bitcoin has yielded better returns than other major asset classes. During the same period, investing $10 daily in MicroStrategy has yielded approximately three times as much as Bitcoin. Investors have realized that MicroStrategy's stock is essentially a leveraged tool tied to Bitcoin. This correlation amplifies gains but also magnifies losses.
The high correlation between MicroStrategy and Bitcoin means that MicroStrategy has provided greater upside potential through leverage, and historical returns have shown that it has outperformed Bitcoin itself in recent years. However, this advantage comes at the cost of greater risk, especially during turbulent market periods.
If this bull market enters a new accelerated phase, institutional funds are likely to flood into both Bitcoin and its most well-known investment company, MicroStrategy. This rotation of funds might come quickly and fiercely, and early movers may reap significant rewards.
