MicroStrategy registers new $1.5b Bitcoin buy

Michael Saylor-led MicroStrategy has increased its total Bitcoin holdings to 439,000, strengthening its position as the top corporate BTC holder.

Another week, another Saylor buy.

On Dec. 16, MicroStrategy executive chairman Michael Saylor disclosed the firm’s latest Bitcoin (BTC) purchase, worth $1.5 billion for 15,350 BTC at an average price of $100,386, according to a regulatory filing.

MicroStrategy’s entire Bitcoin stash is now valued at over $45 billion, as BTC reached a new all-time high of $106,000. Approximately $18 billion of this value represents unrealized profits, with the company’s initial capital investment since 2020 estimated at $27.1 billion.

Infinite money glitch or ticking time bomb?

The so-called “infinite money glitch” strategy employed by MicroStrategy has ignited debates across both traditional finance and crypto communities.

Saylor plans to buy $42 billion worth of Bitcoin before 2028, by issuing debt to raise capital from shares investors. BTC miners like Marathon Digital and Riot Platforms hopped on the trend, filing their treasures with more BTC by offering convertible notes.

This strategy has earned MicroStrategy billions and positioned the company as the top private BTC holding entity. The Nasdaq exchange plans to add MicroStrategy to the coveted Nasdaq-100 index, providing MSTR with larger investor exposure.

However, the debt-for-BTC strategy has drawn criticism. Saylor’s plan heavily relies on Bitcoin maintaining an upward trend, an outcome many in traditional finance and crypto circles view as likely. Nonetheless, a sharp market correction could jeopardize MicroStrategy’s position and potentially trigger a cascading effect reminiscent of the 2022 crypto market downturn.

Bitcoin bull thesis

Whether viewed as accounting brilliance or financial recklessness, Saylor’s steadfast support for Bitcoin has garnered praise from crypto advocates, who point to bullish indicators to counter skepticism.

The U.S. inched closer to passing laws for a strategic BTC reserve, in both federal policy houses and state jurisdicitons. A global sovereign rush for BTC intensified after President-elect Donald Trump beat his presidential opponent, Kamala Harris.

Wall Street, the world’s largest capital market, has over $114 billion domiciled in spot BTC exchange-traded funds, just a year into their existence.