đ Michael Saylorâs MicroStrategy Buys 1,045 $BTC for $110M â MSTR Stock Soars
đ° What happened:
Between June 2â8, MicroStrategy (aka âSaylorâs strategyâ) purchased 1,045 BTC, at an average price of $105,426âŻ/âŻBTC, spending a total of $110 million .
đ Market reaction:
This fresh buy triggered a significant rally in MSTR stock during pre-market trading, reflecting strong investor confidence tied to Bitcoin accumulation .
đ Why it Matters
Bitcoin treasury model: MicroStrategy has become the worldâs foremost "bitcoin treasury" company, leveraging debt and equity issuance to fund ongoing BTC purchases.
Flywheel effect: The strategy is cyclicalâbuy BTC â boost MSTR share price â raise more capital â buy more BTC. Over time, this has dramatically grown both BTC reserves and stock valuation .
â ď¸ Risks & Criticisms
High debt & leverage: MicroStrategyâs aggressive strategy relies on debt and equity, exposing it to BTC volatility and rising financing costs .
Skepticism from analysts: Critics argue â why not buy Bitcoin directly instead of stacking risk in a leveraged equity structure? They call it a risky strategy built on perpetually rising BTC prices .
đ§ Bottom Line
The latest $110 million Bitcoin purchase reinforces Saylorâs long-term caution-free contrarian stance.
MSTR stock jumped, mirroring renewed investor enthusiasm.
However, the modelâs sustainability tightly hinges on continued Bitcoin growthâif BTC drops or financing becomes expensive, MSTR could face turbulence.
