On May 6, 2025, Strategy (formerly MicroStrategy) announced the purchase of an additional 1,895 Bitcoin worth $180 million, raising the Bitcoin accumulation target to $84 billion in less than 3 years. Will this company continue to lead the wave of institutional Bitcoin investment? Let's analyze in detail.
Buy More Bitcoin: $180 Million, Total 555,500 BTC
According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, #Strategy purchased 1,895 Bitcoin for $180 million, marking the second smallest deal in 2025 (after the smallest one in the first week of January). The company now holds 555,500 BTC, valued at $52.4 billion (based on Bitcoin price of $94,000). This transaction completes the $21 billion at-the-money stock issuance program announced since October 2024.
Strategy financed the deal by selling $52 million in perpetual preferred shares 'STRK' and $128.5 million in common stock. Although it can still issue $20.87 billion in preferred shares, the common stock issuance program is 'nearly exhausted' after 6 months.
New Ambition: $84 Billion in 3 Years
In last week's Q1 earnings report, Strategy unveiled an ambitious plan: to sell an additional $21 billion in common stock and issue $21 billion in corporate debt, totaling $84 billion in less than 3 years to buy more Bitcoin. The company, which has a software business, aims to become the 'largest Bitcoin warehouse' in the world, capitalizing on Bitcoin's recovery from $74,800 to $94,000. Strategy's stock also rose 29% last month, despite dropping 4.6% on Monday, reaching $376 per share, according to Yahoo Finance.
Challenge: $5.9 Billion Loss But Still Highly Rated
Strategy reported a loss of $5.9 billion in Q1 due to the decline in Bitcoin value, reflecting market volatility (Bitcoin had hit a 5-month low on April 7, 2025). Nevertheless, analysts remain optimistic:
Bernstein: 'Outperform' rating with a price target of $600 per share, emphasizing Strategy as the 'Bitcoin proxy' for institutional investors who cannot access the Bitcoin spot ETF.
Benchmark: Analyst Mark Palmer maintains a 'Buy' rating, setting a target of $650 per share, calling the $84 billion plan 'bold' and appreciating Strategy's ability to accelerate Bitcoin accumulation.
Bernstein noted: 'Strategy continues to expand its large-scale Bitcoin buying strategy, making it the most scalable Bitcoin investment vehicle for institutions.'
Impact on the Crypto Market
Strategy's approach brings many positive signals:
Increasing institutional confidence: The ownership of 555,500 $BTC reinforces Strategy's role as a 'Bitcoin proxy,' similar to moves by Cardone Capital (buying 350 BTC) and GameStop ($4.7 billion preparing to buy BTC).
Bitcoin price support: Large accumulation reduces circulating supply (only 2.492 million BTC left on the exchange), creating upward price pressure, especially as the Bitcoin ETF attracted $1.8 billion last week.
Boosting the ecosystem: The growth of Bitcoin pulls up altcoins like $XRP (upcoming 2X leveraged ETF) and $ETH (1,800 USD, soon to upgrade Fusaka).
Future Outlook
With a target of $84 billion and market recovery (crypto fund inflows reached $3.4 billion last week), Strategy could continue to lead the institutional investment trend. Despite facing significant losses, support from Bernstein and Benchmark indicates long-term potential, especially as Bitcoin is viewed as 'digital gold' (dominance rate 63.4%).
Conclusion: Will Strategy Reshape Bitcoin Investment?
Strategy purchased an additional $180 million in Bitcoin, bringing total holdings to 555,500 BTC, while targeting $84 billion in 3 years. Despite reporting a $5.9 billion loss, the company received positive reviews from Bernstein and Benchmark, affirming its role as a 'Bitcoin proxy' for institutions. With the crypto market recovering, Strategy could reshape how investors approach Bitcoin. Investors should closely monitor to seize the opportunity.
Risk Warning: Crypto investments carry high risk due to price volatility and legal uncertainties. Please consider carefully before participating.