Strategy recently purchased 21,021 Bitcoin worth $2.46 billion, raising its total holdings to nearly 629K Bitcoin, accounting for about 3% of the total supply. This move has sparked a strong wave of debate about the risks and vision of this investment strategy.
The increase in Bitcoin ownership by Strategy continues to affirm its whale status, while raising questions about its bold financial strategy using capital from new preferred stock issuance. This move greatly impacts investor sentiment, stock price volatility, and the potential profitability of investments in MSTR compared to traditional Bitcoin ETF products.
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Strategy purchased 21,021 Bitcoin worth $2.46 billion, raising its total holdings to nearly 629K Bitcoin, accounting for about 3% of the total supply.
The company raised $2.52 billion by issuing Stretch (STRC) preferred shares, creating an increase in share supply and the potential for MSTR shares to be diluted.
This move has sparked debate among analysts about risks while comparing MSTR with ETF products and assessing its impact on the cryptocurrency market.
Who is Strategy and what is their position in the cryptocurrency market?
Strategy (formerly MicroStrategy) is a publicly traded technology company on the Nasdaq, renowned for its large investment deals in Bitcoin, becoming the largest corporate Bitcoin whale globally.
"Strategy is not just a technology company; it has become a symbol of corporate Bitcoin investment, directly influencing global market sentiment."
Michael Saylor, Chairman of Strategy, 2025, Saylor/X
Since 2020, Strategy has continuously used corporate funds to purchase large amounts of Bitcoin. The 'Bitcoin treasury' policy has placed Strategy in the spotlight and served as a reference model for other listed companies. According to the Glassnode report (2025), Strategy's total holdings reached 628,790 Bitcoin by July 2025, equivalent to about 3% of the total global supply – second only to major exchanges in terms of influence.
The investment by large companies like Strategy into Bitcoin enhances the credibility of the cryptocurrency market, promoting the application of digital assets in corporate treasury management. However, this strategy also carries the risk of price volatility, heavily dependent on market trends.
How did Strategy buy Bitcoin and what is the deal's value?
In the latest transaction, Strategy bought 21,021 Bitcoin with a total value of $2.46 billion, executed at an average price of $117,256K USD/Bitcoin, taking advantage of the correction zone below $117K USD.
The company has officially announced the deal through social media and internal financial reporting systems. This is the second large-scale Bitcoin purchase by Strategy in 2025, following the 'super deal' at the beginning of the year. The timing of the purchase, close to a price drop, demonstrates that Strategy is proactively timing the adjustments, taking advantage of short-term market fluctuations.
The newly purchased Bitcoin helps bring Strategy's total Bitcoin holdings to 628,790, equivalent to 3% of the total supply. According to CryptoQuant data (07/2025), the market value of this Bitcoin has exceeded $74 billion – making Strategy one of the largest private holders globally.
Where does the money to buy Bitcoin come from? What is the role of Stretch (STRC) shares in Strategy's capital strategy?
To execute this large purchase, Strategy successfully issued 28 million Stretch (STRC) preferred shares, raising $2.52 billion – significantly exceeding the initial target of $500 million.
"The flexible capital increase strategy through large preferred stock issuances has provided Strategy with a huge financial resource to expand its Bitcoin holdings, while allowing investors to diversify their dividend regime."
Bloomberg Intelligence, Q3/2025 Report
The funding channel through perpetual preferred stock such as STRC allows Strategy to maintain proactive cash flow without needing to take on direct debt or sell core assets. The dividend yield associated with each preferred share package helps attract long-term investors, enhancing financial resilience.
However, the expansion of share issuance up to $2.52 billion has raised many concerns about the risk of diluting the value of common MSTR shares, reducing the Bitcoin per share ratio as well as the long-term ownership benefits for existing investors.
What are the details of the types of preferred shares and their impact on MSTR shares?
Strategy has four lines of preferred shares: Strike (STRK), Strife (STRF), Stride (STRD), and Stretch (STRC). Each line has its own dividend regimen, along with a conversion feature to MSTR at a specified price.
The issuance of preferred shares helps the company diversify its capital structure but comes with the risk of diluting common shares. As the number of preferred shares increases through 'at-the-market' (ATM) issuances, the circulating shares in the market grow rapidly, reducing the benefits of holding MSTR shares – clearly reflected through the Bitcoin per share ratio and the mNAV (modified Net Asset Value) index.
"The dilution of common stock from large preferred stock issuances may reduce the hidden value of Bitcoin ownership, affecting the attractiveness of long-term investment in MSTR."
Willy Woo, Bitcoin Analyst, X.com, 30/07/2025
Over time, each capital increase through preferred stock has caused the mNAV – the difference between MSTR share price and the net asset value converted into Bitcoin – to decline. Data from the Strategy Tracker indicates that mNAV once peaked at 3.89x in November 2024, then began a prolonged downward trend until now.
What is the significance of the mNAV index and how does it compare to Bitcoin ETFs like IBIT?
The mNAV (modified Net Asset Value) index measures the actual value that investors receive from owning MSTR shares compared to direct investment in Bitcoin or Bitcoin ETF products.
As the mNAV increases, MSTR shares are more sought after due to higher yields compared to ETF investments or buying Bitcoin spot. However, as preferred shares increase and MSTR's market price does not keep pace, mNAV contracts, reducing new investment momentum. Analyst Willy Woo currently states that buying Bitcoin ETFs like BlackRock's IBIT has become safer than buying MSTR as the MSTR/IBIT ratio breaks through long-standing resistance levels.
Criteria MSTR Bitcoin ETF (IBIT) Profitability (2024-2025) 31% (YTD) 26% (YTD) Share dilution risk High (due to new share issuance) Low Liquidity Lower than ETF High Strong correlation with Bitcoin price High, but influenced by corporate capital factors Very high, closely tracking spot price Dividend benefits Yes (in preferred shares) No
A chart from TradingView (07/2025) shows that in July, Bitcoin grew stronger than MSTR with a superior margin of 8%, however, year-to-date, MSTR still outperformed Bitcoin in terms of price increase (31% vs. 26%). This reflects the financial leverage effect, but also comes with long-term instability if the share dilution strategy continues.
What are experts' contrasting views on the risks and potentials of this strategy?
Strategy's 'all-in' move on Bitcoin has divided experts into two opposing viewpoints. The cautious side worries that share dilution will reduce the long-term value of investor rights, while the supportive group believes that the increased scale of Bitcoin holdings will transform Strategy into an independent financial force.
"Strategy has risen to become a financial organization with almost independent power, as the market value of Bitcoin assets exceeds $74 billion, elevating the company to the influence level of a small nation."
Jeff Walton, MSTR Analyst, 30/07/2025, x.com
This assessment is based on the continuous increase in Strategy's Bitcoin assets throughout both bull and correction markets. CEOs of exchanges like Binance and Coinbase believe that the large-scale Bitcoin holding momentum of listed companies is helping to normalize liquidity standards and professionalism in the digital asset industry.
Despite recognizing the advantages of attracting capital from traditional financial markets, this strategy still requires close monitoring to avoid an 'underground debt bubble' related to uncontrolled preferred stock issuance, especially as the market enters severe downturns.
What are the impacts of cash flow and market sentiment following this transaction?
The volume of Bitcoin purchased by Strategy significantly increases total demand in the market, while reinforcing institutional investor sentiment that Bitcoin is increasingly becoming an 'essential store of value asset.'
However, on social media platforms like Crypto Twitter, there is a heated debate about the impact of the strategy of raising funds through preferred stock on MSTR shares and the entire DeFi ecosystem.
"Whenever Strategy purchases a large amount of Bitcoin, the entire market eagerly awaits the next fluctuation – the emotional impact on the market is undeniable."
Glassnode, July 2025 Market Report
Based on historical data, instances where Strategy aggressively purchases Bitcoin are often accompanied by rising prices and unpredictable short-term fluctuations. Investors must remain cautious about the likelihood of strong corrections due to the 'bad news, anxiety, uncertainty' (FUD) effect if the competitive advantages of MSTR weaken due to internal dilution.
Long-term strategy: Vision and future forecasts for Strategy and the cryptocurrency market?
Strategy's long-term goal is to maintain its status as the largest corporate Bitcoin whale on the planet, thereby instilling confidence in the 'digital treasury' function in the future of global finance.
JPMorgan's forecast (2025) assesses: if Bitcoin prices continue to stabilize and the trend of accepting digital assets increases, Strategy may become a benchmark for companies converting reserve assets to cryptocurrency.
Conversely, when the market reverses or faces tighter financial management, the strategy of using high financial leverage may backfire if Bitcoin prices drop below a safe threshold. Therefore, caution, transparency, and proactive risk management are key factors in maintaining this dominant position.
"As public companies invest long-term in Bitcoin on an increasing scale, the entire digital asset industry is propelled into a new, more professional phase – but it also increasingly faces stricter risk management requirements."
Coinbase Research, Industry Development Report 2025
The growth potential of Strategy depends on its ability to leverage smart capital, optimize asset turnover, control share dilution, and be ready to adjust strategies according to market trends – avoiding repeating the mistakes of past financial bubbles.
Comparative perspective: Investing in MSTR, Bitcoin ETF, or directly buying Bitcoin, what is the optimal choice?
Investing in MSTR shares offers two benefits: indirect access to Bitcoin through the financial leverage effect and potential dividends from preferred shares. However, investors face the risk of share dilution, depending on the company's strategic fundraising policy and price volatility that may not align with Bitcoin price movements.
Meanwhile, Bitcoin ETFs (like IBIT, ARKB) offer transparency, high liquidity, low transaction fees, and no concerns about internal corporate governance. Direct investment in Bitcoin is suitable for individual investors who manage their personal risks well, accept trading prices that are as close to the market as possible, but lack financial leverage or shareholder rights.
Criteria MSTR Bitcoin ETF Direct Bitcoin Actual return (2025) Higher than Bitcoin, if the company operates well Stable, close to Bitcoin price Fair market price Internal risk Share dilution, financial management ETF market risk Wallet security, price volatility Dividend benefits Yes (depending on preferred stock type) None None Simplicity of investment Complex due to need to understand company structure Simple Simple, personalized
Overall, each option will meet a different group of investors, and closely monitoring the dilution of shares and preferred capital flows from Strategy is a key factor for investors to make optimal decisions.
What lessons can be learned for companies and institutional investors pursuing the 'Bitcoin treasury' strategy?
Strategy's continuous expansion of its Bitcoin treasury sets a model for large corporations globally: breaking down barriers to digital asset investment and leveraging flexible capital from preferred stock or convertible bonds.
However, Deloitte's 2025 report emphasizes that companies need to carefully weigh the short-term benefits of increasing reserve assets against the risks of diluting shareholder rights, the complexities of capital management, and the risk of sudden market reversals. Transparency of information, financial reporting, and clear strategy announcements are key to maintaining investor trust.
Experiences in recent years show that the real strength lies in the transparency of the preferred stock issuance process, strict control over the debt/equity ratio, and proactively adjusting the buy-sell strategy based on cash flow and macroeconomic developments.
Frequently Asked Questions
What percentage of the total Bitcoin supply does Strategy currently hold?
Strategy holds approximately 628,790 Bitcoin, equivalent to 3% of the total global Bitcoin supply, according to CryptoQuant's report from July 2025.
What is the difference between buying MSTR shares and Bitcoin ETFs?
MSTR provides financial leverage, may pay dividends but has a higher risk of share dilution compared to Bitcoin ETFs, which are transparent and closely align with the actual Bitcoin price movements.
What impact does the mNAV index have on MSTR investments?
The mNAV index reflects the disparity between MSTR share value and the actual value of Bitcoin in the company's treasury. The higher the mNAV, the more attractive the shares; a decline in mNAV reduces investment appeal.
What is the biggest risk when buying MSTR shares?
The biggest risk is share dilution due to issuing additional preferred shares, reducing common shareholder rights, especially as the company continuously raises new capital.
What are the benefits of owning Bitcoin through MSTR?
Indirect access to Bitcoin with financial leverage, receiving dividends if holding preferred shares, suitable for investors wanting exposure to both the stock market and cryptocurrencies.
Can Strategy's strategy change if the market reverses?
It is entirely possible; the company constantly monitors fluctuations and adjusts its capital strategy, buying and selling Bitcoin in line with financial conditions and market signals.
Has MSTR ever outperformed Bitcoin in terms of profit?
Yes, MSTR has outperformed Bitcoin in several bull market phases, thanks to financial leverage effects and a flexible capital management strategy (according to TradingView, 2025).
Source: https://tintucbitcoin.com/microstrategy-mua-them-so-huu-628k-btc/
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