MicroStrategy has added an additional USD 2.1 billion to its Bitcoin portfolio. The company has now purchased BTC for the fifth consecutive day on Monday, bringing its holdings to over 420,000 BTC, or over $40 billion. The company's average purchase price has risen to nearly US$60,000, and it plans to raise US$42 billion by 2027 to continue the buying frenzy. Despite being down 7.5% today, MicroStrategy stock has grown by a significant 433% since January 2024.
You won't believe it – Michael Saylor and MicroStrategy bought Bitcoin.
The Bitcoin maximalist to end all Bitcoin maximalists is not slowing down despite BTC soaring past US$100,000 (A$155,000).
Instead, they doubled down on their investment policy (which is very simple: buy Bitcoin) and added an additional US$2.1 billion (A$3.26 billion) to their portfolio.
This makes MicroStrategy buy Bitcoin for the fifth day in a row on Monday, making it look as if they set up a dollar-cost averaging strategy and took their hands off the keyboard.
The sale brings Saylor's holdings to 423,650 Bitcoins, valued at more than US$40 billion (A$62).
Related: US Bitcoin ETF holdings 1.1 million, surpassing Satoshi's Stash to become world's largest
Saylor plans to double his Bitcoin holdings over the next three years
MicroStrategy has maintained strong ties to Bitcoin even through the harsh crypto winter of 2022-2023.
However, the team has ramped up its purchases in the past six weeks since Donald Trump's election, purchasing 100,000 BTC in two weeks.
Until recently, the company's average purchase price was in the US$30,000 range, but that figure has ballooned to nearly US$60,000 (AU$93,000).
And despite Bitcoin's soaring price, the team shows no signs of slowing down, with Saylor announcing plans to raise $42 billion by 2027 to buy, you guessed it, Bitcoin.
Going all-in on Bitcoin: genius or danger?
Everyone knows Saylor's stance on BTC, but not everyone is convinced it's the right strategy.
Min Jeong, a research analyst at Presto Research, told Bloomberg that the company's heavy reliance on Bitcoin could spell disaster for shareholders if the bull market eases.
The sustainability of this strategy is effective in bull markets, but highly depends on the continued rise in Bitcoin price.
Min Jung, Research Analyst, Presto Research
MicroStrategy's share price MSTR plunged 7.5% in today's trading, taking the price to around US$365 (A$566).
Despite the short-term weakness, MSTR is up a hefty 433% since the beginning of 2024, so investors shouldn't be too spooked for now.
