As Bitcoin executive chairman Michael Saylor has more than doubled his prior holdings of the currency, his company, MicroStrategy, is now the largest corporate holder of Bitcoin with 439,000 BTC. Earlier this month the company revealed its latest on December 16, when it stated that it had purchased 15,350 BTC for $1.5 billion, at an average of $100,386 per coin.
Bitcoin’s climb past $106,000 means that MicroStrategy’s Bitcoin reserves are now worth $45 billion, according to that total. In particular, $18 billion of this valuation is not realized earnings and the companies capital commitment since 2020 is $27.1 billion.
MicroStrategy’s Bold Bitcoin Strategy: The “Infinite Money Glitch”
Across traditional finance and crypto circles, the microStrategy’s so called ‘infinite money glitch’ strategy of raising capital through debt and equity for the purchase of Bitcoin has led to heated debate. Yet Saylor’s plan for the company was to become an ambitious BTC bull, aiming to have a hands on another $42 billion worth in 2028, the table poised from debt taken from the shareholders.
The adoption of the same strategy gave MicroStrategy a boost in its finances and also encouraged other BTC heavy corporations like Marathon Digital and Riot Platforms to follow the same lead. This is intended to further heighten its visibility among institutional investors even more, as it also is set to appear on the Nasdaq exchange’s prestigious Nasdaq-100 index.
Saylor bases his strategy on Bitcoin’s upward trajectory, but critics warn of vulnerabilities in the BTC system. MicroStrategy is vulnerable to a sudden market downturn which could damage its position to devastating effect and have a knock-on effect across the market, the same as in the 2022 crypto market crash.
The Bitcoin bulls, however, applaud Saylor’s steadfast dedication to BTC, citing bullish signals along with growing adoption of BTC by institutions and even governments across the globe. The momentum is building in U.S. federal and state legislatures around formalizing national policies for a national BTC reserve, according to recent reports.
Bitcoin’s global race has heated up following the victory of President-elect Donald Trump over Kamala Harris. Just a year since their launch, Wall Street now manages over $114 billion in spot BTC exchange traded funds and is steadily getting more entrenched in the cryptocurrency market.
