Strategy Company Significantly Increases Bitcoin Holdings: Strategic Analysis and Market Impact

Strategy (formerly MicroStrategy) is the world's largest publicly traded Bitcoin holder. As of April 2025, its Bitcoin holdings have surpassed 538,000 coins, with a total value of approximately $36.5 billion and an average cost of $67,766 per coin. The company's accumulation strategy and long-term belief in Bitcoin have made it a bellwether in the cryptocurrency market.

1. Accumulation Strategy: Buy the Dip and Capital Operations

Strategy employs a 'buy the dip' strategy, significantly increasing its positions during market corrections. For example:

- In February 2025, purchased 7,633 BTC at an average price of $97,255, costing $742 million.

- In April 2025, when the Bitcoin price fell to $84,785, it further increased its holdings by 6,556 BTC, investing $555.8 million.

Sources of funding include equity financing, preferred stock issuance, etc., for example, in March 2025, raised $711 million through a 10% coupon rate preferred stock issuance.

2. Market Impact and Industry Position

- Bitcoin Price Support: Strategy holds 2.5% of the circulating supply of Bitcoin, reducing market supply and forming long-term price support.

- Institutional Wave: Its strategy encourages more companies to incorporate Bitcoin into their balance sheets, with Asian companies like Metaplanet following suit.

- Stock Performance: Despite Bitcoin's volatility, Strategy's stock price rose by 518% in 2024 and continues to climb in 2025, with a market capitalization exceeding $80 billion.

3. Future Outlook and Risks

- Long-term Goal: Michael Saylor predicts Bitcoin could reach $1.3 million, and the company plans to further increase its holdings through $21 billion in financing.

- Potential Risks: The high-leverage financing model relies on Bitcoin's appreciation; if the price crashes, it may face liquidity crises.

Strategy's Bitcoin strategy has not only strengthened its market position but also propelled the institutionalization of crypto assets, yet its high valuation and reliance on financing remain potential challenges.