MicroStrategy, the business intelligence company turned Bitcoin powerhouse, has embarked on its largest cryptocurrency acquisition spree to date, purchasing approximately 113,000 Bitcoins worth $11 billion since mid-November 2024.
The latest purchase of over 5,000 Bitcoins, announced on Monday by founder and chairman Michael Saylor, brings the company's total Bitcoin holdings to more than 444,000 coins valued at roughly $44 billion at current market prices.
This aggressive accumulation strategy has helped propel MicroStrategy into the prestigious Nasdaq 100 index, reserved for the largest non-financial companies on the exchange. The company's stock price has surged more than 500% since January 2024, now trading around $360.
While MicroStrategy's core business remains enterprise data analytics software, its identity has become increasingly tied to its massive Bitcoin treasury. Market observers widely view the company's stock as a proxy for Bitcoin price movements.
To finance these purchases, MicroStrategy leverages surplus cash from its software operations alongside equity and debt issuances. However, this approach has drawn criticism from market analysts.
"The debt will far eclipse equity, the trading premium will disappear, the conversion prices on the notes will feel unreachable and equity price will collapse under the weight of senior debt, particularly during a gnarly Bitcoin dip," warned Tatiana Koffman, author of "Myth of Money," in a recent social media post.
Despite these concerns, Saylor continues his unwavering Bitcoin acquisition strategy, cementing MicroStrategy's position as one of the largest institutional holders of the cryptocurrency. The company has nearly doubled its Bitcoin holdings in just six months, demonstrating an unprecedented commitment to cryptocurrency investment among publicly traded companies.