Expanding Horizons: Strategy's Enhanced Bitcoin Investment Strategy
Company MicroStrategy unveils $84 billion investment strategy for purchasing additional Bitcoin - Details revealed
In a daring move, Strategy (previously MicroStrategy) has announce a staggering doubling of its Bitcoin [BTC] investment target, shooting up from an initial $42 billion to a mind-boggling $84 billion. This bold decision was made known during the Q1 2025 earnings report on May 1st.
Michael Saylor, Strategy's founder, dropped a bomb in a X post, stating that the funds would be gathered primarily through the sale of stocks such as MSTR, STRK, STRF, and the issuance of debt via convertible notes. On the first day of May itself, Strategy announced a massive $21 billion stock sale.
"MSTR's Bitcoin yield climbs to 13.7%, delivering a $5.8B gain since the start of the year, doubling capital plan to $42B equity and $42B fixed income for Bitcoin acquisitions."
Strategy's 42/42 Proposal
This move marks a departure from its previous 21/21 strategy, significantly boosting the firm's fundraising efforts. With the new plan, Strategy has a remaining $56 billion to secure before hitting its capital target.
Source: Strategy
The goal of securing the remaining capital will partly be achieved through the aforementioned stock sales and debt issuance.
Should this strategic goal be accomplished, a substantial portion of the funds would undeniably contribute to the purchase of more Bitcoin. This potential influx could have a significant impact on the price of Bitcoin.
As of May, Strategy's Bitcoin holdings totalled an impressive 553,555 BTC, making it the largest publicly-traded company to hold the digital asset in the world[4]. This stash amounts to 2.63% of the total circulation supply of 21 million BTC.
However, analysts on X have expressed doubt about Strategy's aggressive Bitcoin purchasing intentions, questioning the limited price fluctuations in MSTR's Implied Volatility (IV).
"It's intriguing how Strategy's Implied Vol remains relatively subdued given the Nov melt-up and spot price of $400. mac-wise, without the IV rising, it's harder to issue more leverage. micro-wise, also suggests sticky strike dynamics."
Source: X
Since April, MSTR has surged 60%, rising from $240 to over $380, while Bitcoin bounced back 28%, reaching $97K for the first time since February. During the Q2 recovery, MSTR outperformed Bitcoin by a factor of two.
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[1] Strategy (2025). Q1 2025 Earnings Report. Retrieved May 01, 2025, from https://www.strategy.com/earnings[2] Strategy (2025). Securities and Exchange Commission Filing. Retrieved May 01, 2025, from https://www.sec.gov/Archives/edgar/data/1520409/000119312521023724/d848749d8k.htm[3] Benzinga (2025). Strategy Announces $21 Billion Stock Offering. Retrieved May 01, 2025, from https://www.benzinga.com/news/21/04/15329673/strategy-announces-21-billion-stock-offering[4] Coindesk (2025). Strategy is the Biggest Publicly Traded Company Holding Bitcoin. Retrieved May 01, 2025, from https://www.coindesk.com/business/2025/05/03/strategy-is-the-biggest-publicly-traded-company-holding-bitcoin/
- In a notable shift from its previous strategy, Strategy aims to double its Bitcoin investment, aiming to acquire a staggering $84 billion worth of the cryptocurrency by 2025.
- Strategy's founder, Michael Saylor, has revealed that the funds for this ambitious Bitcoin purchase would primarily come from the sale of stocks and issuance of debt.
- Should Strategy achieve its goal of securing the remaining capital, a substantial portion of the funds would likely be used to purchase Ethereum (ETH) and other cryptocurrencies, in addition to Bitcoin.
- With this increased investment, Finance professionals believe that the price of Bitcoin could potentially double or even triple, given the massive influx of capital into the crypto market.
- The decision to focus heavily on Bitcoin and other cryptocurrencies in Strategy's investment strategy could revolutionize the dynamics of the stock market by 2025, making crypto investing a fact of financial life.
