1. Epic increase: The digital code behind the acquisition of 500,000 BTC

The world's largest corporate Bitcoin holder, Strategy (formerly MicroStrategy), has again taken action, purchasing 6,911 Bitcoins for $584 million between March 17 and 23, with an average price as high as $84,529. After this operation, its total Bitcoin holdings exceeded 500,000 (506,137 Bitcoins), with a cumulative investment of about $33.7 billion and an average cost of $66,608 per coin (including fees).

This increase in holdings coincided with a Bitcoin price correction period, but Strategy, relying on its 'buy the dip' strategy, has currently achieved an unrealized profit exceeding $11.2 billion (calculated at the current Bitcoin price of about $88,000). Co-founder Michael Saylor recently publicly predicted that Bitcoin's price could reach $1.3 million in the next 20 years, emphasizing its long-term value as 'digital gold'.

2. Arsenal expansion: The capital game behind the $711 million preferred stock

The source of funds for this increase in holdings mainly relies on Strategy's preferred stock issuance plan completed on March 21. The company issued shares at $85 each, with a coupon rate of 10%, expecting to raise $711 million, and completed the settlement on March 25. This marks the formation of a 'financing-purchasing-Bitcoin price increase' cycle for Strategy.

  • Stock premium: After the announcement, its stock price rose 7.16% in a single day, with a market value of $79.2 billion, significantly higher than the market value of Bitcoin holdings.

  • Leverage strategy: By issuing debt and equity instruments, continuously amplifying the leverage effect of Bitcoin holdings on stock prices.

3. Counter-trend layout: The crypto gamble under the shadow of the global trade war

This increase in holdings occurred against the backdrop of intensified global trade war risks. Analysts point out that the U.S. reciprocal tariff policy will take effect on April 2, possibly putting dual pressure on traditional finance and the crypto market. However, Strategy chooses to go against the trend, with the logic being:

  1. Hedging: Bitcoin is seen as a non-sovereign asset under geopolitical risks, similar to gold.

  2. Market cycle prediction: If tariff policies ease after April, risk assets may rebound, and Bitcoin, as a high-volatility asset, will benefit first.

  3. Institutional consensus strengthening: Traditional asset management giants like BlackRock continue to increase their holdings in Strategy shares, indicating mainstream capital's demand for allocation to crypto assets.

4. Market shockwaves: The dual resonance of Bitcoin prices and ecology

Strategy's increase in holdings has had a significant impact on the market:

  • Price boost: After the announcement, the price of Bitcoin quickly broke through $88,000, reaching a high of $88,713.

  • Ecological radiation: Its holding accounts for 2.4% of the total supply of Bitcoin, becoming a key force affecting market liquidity.

  • Industry benchmark effect: More companies are imitating the 'Bitcoin balance sheet' strategy, driving the continued rise in institutional holdings.

5. Controversies and risks: Can the high valuation be sustained?

Although Strategy's Bitcoin strategy is highly anticipated, its business model still faces scrutiny:

  • Valuation bubble: The stock price is severely deviating from the net asset value (NAV) of Bitcoin, implying the market's excessive optimism towards its 'Bitcoin proxy stocks'.

  • Liquidity risk: If Bitcoin prices plummet, high-leverage financing models may trigger a series of liquidations.

  • Regulatory uncertainty: The U.S. SEC's classification dispute over crypto assets may affect its financing ability.


6. Future outlook: $21 billion ambition and market changes

Strategy has revealed plans to raise $21 billion through the issuance of preferred shares (STRK), further expanding its Bitcoin holdings. If this ambition is realized, its holdings may approach 5% of the total supply of Bitcoin, becoming a true 'market price maker'.

Short-term catalysts:

  • Market sentiment recovery after the implementation of the tariff policy on April 2

  • The inflow of funds into Bitcoin spot ETFs has rebounded

  • The expectation of the Federal Reserve to lower interest rates is rising

Long-term narrative:

  • The consensus of Bitcoin as an 'inflation-resistant asset' deepens

  • RWA (real-world assets) on-chain promotes Bitcoin collateral demand

  • Exploring the complementarity between global central bank digital currencies (CBDCs) and Bitcoin

A power game that disrupts traditional finance

Strategy's holding of 500,000 Bitcoins is not only a victory for corporate strategy but also reveals the deep binding of crypto assets and traditional capital markets. As Michael Saylor continues to double down as a 'digital asset evangelist', the market is witnessing a paradigm revolution concerning 'monetary sovereignty' and 'value storage'. However, in this high-risk, high-reward game, investors should be cautious: every breath of the whales may stir up huge waves.