Strategy, the company formerly known as MicroStrategy, has once again made a big move in the Bitcoin market. It has purchased 7,633 Bitcoin ($BTC) for around $740 million, showing that it remains committed to its long-term Bitcoin investment plan.
This is the company’s first major purchase since its rebranding, and it confirms that Strategy is sticking to its Bitcoin-focused approach.
There had been speculation that the company might slow down or even stop buying Bitcoin, but this latest purchase proves otherwise.
Strategy now holds 478,740 $BTC, making it the largest corporate holder of Bitcoin. Despite market fluctuations and some concerns about tax implications, the company continues to increase its Bitcoin reserves.
Strategy has been steadily buying Bitcoin for years, and this latest acquisition is part of that pattern. The company has been accumulating $BTC since August 2020, and its latest purchase was made at an average price of $97,255 per Bitcoin.
Co-founder and chairman of Strategy, Michael Saylor, confirmed the purchase. He emphasised that the company remains committed to Bitcoin.
“We remain committed to our Bitcoin strategy, and this latest purchase is a continuation of our long-term vision”, he said.
The company’s buying pattern has not always been the same. Sometimes, it has made much larger purchases, while at other times, the acquisitions have been smaller.
This latest purchase is slightly smaller than some of its previous ones, but the overall strategy remains unchanged.
In the past, there were rumours that Strategy might pause its Bitcoin buying due to tax liabilities. However, the latest move dismisses these concerns.
Even though Bitcoin’s price has remained relatively stable, Strategy continues to see it as a valuable long-term asset.
How strategy funds its Bitcoin purchases
Unlike individual investors, Strategy doesn’t buy Bitcoin using its cash reserves. Instead, it raises money by issuing and selling stocks or bonds.
This approach allows the company to continue increasing its Bitcoin holdings without affecting its operational cash flow.
The latest purchase was funded through the sale of convertible notes, a type of debt that can be converted into company shares. This method has been part of Strategy’s financial strategy for a while and is a key part of its “21/21 plan”.
The 21/21 plan is Strategy’s roadmap for financing future Bitcoin purchases. Under this plan, the company aims to raise $21 billion in equity and $21 billion in fixed-income securities over the next three years.
These funds will be used to buy even more Bitcoin, strengthening the company’s position as a major player in the crypto market.
Institutions have also taken notice of Strategy’s bold Bitcoin approach. One of the most significant developments is BlackRock’s increased stake in the company.
The global investment firm, which has been pushing for Bitcoin ETFs, now holds 5% of Strategy’s stock.
This investment suggests that BlackRock sees value in Strategy’s Bitcoin-heavy approach. It also highlights the growing institutional confidence in Bitcoin as a legitimate asset class.
Strategy’s future plans
While Strategy continues to buy Bitcoin, the broader cryptocurrency market is watching Bitcoin’s price movements closely. The biggest question right now is whether Bitcoin can break past the $100,000 mark.
Bitcoin has been trading in a relatively stable range over the past few months. It recently recovered from a weekly low of $94,750 and reached $98,349 before stabilising around $97,614.
Traders are closely watching key price levels. Prominent trader CJ noted that $96,300 is a crucial support level. He stated, “Finally got a fill into that 95k level. I now want to see 96.3k defended if we pull back during NY”.
Another well-known trader, Skew, pointed out that the market is seeing a lot of liquidity sweeps, meaning both buyers and sellers are actively fighting for control.
“Still stuck within the same current range, although notably, the market has now swept liquidity both ways – ask liquidity & bid liquidity”, Skew explained.
Bitcoin has been locked in a three-month range, with traders hesitant to call for a major breakout. Analysts agree that for Bitcoin to enter its next growth phase, it needs to firmly break past $100,000.
Analyst Rekt Capital mentioned that Bitcoin’s uptrend is still intact as long as it continues to form higher lows on the weekly chart. However, failure to reclaim the $97,900 level could lead to a drop back toward $95,000 or lower.
Despite these short-term uncertainties, Bitcoin remains a key asset for institutional investors like Strategy. With 478,740 $BTC on its balance sheet, the company is well-positioned to benefit from Bitcoin’s long-term growth.
What’s next for Strategy and Bitcoin?
Strategy’s 2025 Bitcoin yield targets remain a key focus for investors. The company’s $BTC yield—a measure of how much Bitcoin it holds relative to its total shares—stood at 4.1% for early 2025.
This is lower than its 2024 full-year yield of 74.3%, but Strategy is still on track to meet its revised 15% target for 2025.
Despite a $670 million net loss in Q4 2024, Strategy’s $BTC gains in early 2025 have already reached $1.8 billion, marking an 18% increase from its $10 billion $BTC gain target for the year. This suggests that the company could exceed expectations if Bitcoin continues its upward momentum.
For 2024, Strategy recorded a $140,538 gain per Bitcoin, totalling $13.1 billion in $BTC profits. Given Bitcoin’s strong performance in early 2025, the company remains optimistic about achieving significant returns.
The company’s transition from MicroStrategy to Strategy was officially announced on 5 February 2025. This change highlights its shift from a traditional software and analytics firm to a Bitcoin-focused corporate powerhouse.
Michael Saylor has been a strong advocate for Bitcoin and believes it is the best store of value. The rebranding has been well received in the crypto industry, with the CEO of Jan3, Samson Mow, saying that it aligns well with Strategy’s mission.
Strategy’s shift to a Bitcoin-first company comes at a time when US lawmakers are discussing a national Bitcoin reserve strategy. If such a policy is introduced, it could further legitimise Bitcoin as a global financial asset.
With Bitcoin’s price approaching $100,000, many are watching whether it can maintain its upward momentum. If Bitcoin breaks through this level, it could lead to further institutional buying and push the price even higher.
As Bitcoin’s institutional adoption grows, Strategy’s approach may serve as a model for other corporations looking to hedge against fiat currency devaluation and macroeconomic instability.
With BlackRock’s increasing investment, it is clear that major financial players see long-term value in Strategy’s Bitcoin-first strategy.
For now, all eyes are on Bitcoin’s battle with the $100,000 resistance level. Whether it breaks through or remains in its current range will likely shape the crypto market’s direction in the coming months.
