[content-module:CompanyOverview|NASDAQ:MSTR]
When discussing the Bitcoin revolution and the company that popularized Bitcoin as a treasury asset, Strategy Inc. (NASDAQ: MSTR) is often the first that comes to mind. Previously recognized as MicroStrategy, its CEO, Michael Saylor, has been an outspoken advocate for Bitcoin. The firm made a significant strategic shift in August 2020 by announcing its initial Bitcoin acquisition of 21,454 Bitcoins for around $250 million.
Since that pivotal moment, various companies in the computer & tech industry, such as Block Inc. (NYSE: XYZ), along with retailers like MercadoLibre Inc. (NASDAQ: MELI), have begun to incorporate Bitcoin into their balance sheets as a treasury reserve asset, opting for it over conventional cash reserves. Investors have praised this choice during Bitcoin’s price surges, but during market declines, skepticism arises concerning Strategy’s approach, as it continues to tie its fortunes to Bitcoin by effectively turning shares into cryptocurrency through stock offerings. This leads investors to ponder whether Strategy serves as a guiding light for Bitcoin or merely a casualty of overenthusiasm.
From Skeptic to Advocate: The Transformation of Mike Saylor
CEO Mike Saylor’s stance on cryptocurrency hasn’t always been supportive. In December 2013, he dismissed Bitcoin as a passing fad, infamously tweeting, “Bitcoin’s days are numbered. It seems like just a matter of time before it meets the same fate as online gambling.” The notorious collapse of the Mt. Gox exchange in February 2014 intensified skepticism regarding Bitcoin’s viability.
However, over time, Saylor’s perspective shifted dramatically. By 2025, he referred to Bitcoin as “the world’s first perfect money,” forecasting its potential to surpass gold as the primary store of value, with a long-term price target of $5 million per Bitcoin.
The Justification for Bitcoin Acquisitions: Safeguarding Against Inflation and a Weakening Dollar
[content-module:Forecast|NASDAQ:MSTR]
Saylor initially positioned Bitcoin as a safeguard against inflation and a declining U.S. dollar, leveraging this rationale to support increasingly large investments.
In September 2020, Strategy expanded its Bitcoin holdings by an additional $175 million, followed by a $650 million convertible note offering in December to finance the purchase of 32,220 coins.
By the end of 2020, the company had accumulated 70,470 Bitcoins valued at approximately $1.125 billion, reflecting an average cost of $15,964 per coin.
This strategy helped bolster the legitimacy of corporate Bitcoin acquisitions, leading electric vehicle manufacturer Tesla Inc. (NASDAQ: TSLA) to invest $1.5 billion in Bitcoin as a treasury asset in February 2021.
Establishing the World’s First Bitcoin Treasury
Strategy consistently increased its Bitcoin reserves in the years that followed. In November 2024, the company branded itself as “the world’s first Bitcoin Treasury Company” in its earnings reports, becoming the largest corporate holder of Bitcoin.
Most recently, it acquired 22,048 Bitcoins in the last week of March 2025 for approximately $1.9 billion. By April 8, 2025, Strategy’s holdings surged to 528,185 Bitcoins at a total purchase price of $35.63 billion, with an average acquisition cost of $67,458.
Concerns Over Dilution
While insiders, including the CEO, CFO, and EVP, were actively purchasing Strategy shares in Q1, the risk of dilution looms large. Strategy’s share count increased by 16.2% year-to-date (YTD) and is expected to rise further in 2025.
Additionally, its debt skyrocketed by 220% in 2024 and is projected to continue increasing in 2025. Strategy aims to hold $150 billion in Bitcoin, financed through $42 billion in capital raises by 2027.
Saylor’s Three Catalysts for Bitcoin Reaching $5 Million Per Coin
Mike Saylor argues that the world requires a non-sovereign store of value. He identifies three key catalysts that will elevate Bitcoin prices to $500,000 soon and $5 million in the long run:
- The approval of spot Bitcoin ETFs: This catalyst has already materialized, with several spot Bitcoin ETFs facilitating institutional ownership. It provides a straightforward avenue for institutions to acquire significant Bitcoin amounts through a liquid ETF like the iShares Bitcoin Trust (NASDAQ: IBIT), which boasts an average daily volume of 45 million shares and $52.46 billion in assets under management (AUM) as of April 8, 2025.
- Banks custodizing Bitcoin: If banks begin to offer loans backed by Bitcoin, it could integrate Bitcoin into the traditional financial system and boost institutional demand. Saylor notes, “Your bank is going to custody it for you and lend against it.” He believes that banks can accommodate Bitcoin on their balance sheets and provide low-interest loans against it. This trend is beginning to gain traction in the financial sector.
- Bitcoin as a treasury asset: Should more companies adopt Bitcoin as a treasury reserve asset, like Strategy, it would inevitably increase demand for Bitcoin. Saylor claims that fair value accounting for Bitcoin would revolutionize how companies report its market value, eliminating writedowns for losses. He states, “I can adjust my balance sheet up or down based on fair value, just like I do with Apple stock or even Treasury bonds.”
This trend is gaining momentum as more companies integrate Bitcoin as a treasury reserve asset, as evidenced by GameStop Co. (NYSE: GME), where CEO Ryan Cohen initiated this strategy by proclaiming plans to invest proceeds from a $1.3 billion convertible note offering into Bitcoin.
Investors across various companies find themselves indirectly or directly exposed to Bitcoin. Strategy is pioneering the treasury reserve movement, and investors are in for the journey. This connection ties their stock prices to Bitcoin, for better or worse.
Before making your next trade, be sure to consider this.
MarketBeat monitors Wall Street’s top-rated and highest-performing research analysts and the stocks they recommend to clients daily.
Our team has pinpointed five stocks that top analysts are quietly advising their clients to purchase now before they gain widespread attention in the broader market… and surprisingly, none of the well-known stocks made the cut.
They believe these five stocks represent the best opportunities for investors at this moment…
Discover The Five Stocks Here
