The Big Move: A Massive Bitcoin Purchase
Imagine a company so obsessed with Bitcoin that it keeps buying more, no matter what. That’s exactly what Strategy (formerly known as MicroStrategy) just did. Between February 3 and February 9, 2025, it bought another 7,633 BTC for $742.4 million at an average price of $97,255 per Bitcoin. This isn’t just a one-time thing—Strategy now owns a staggering 478,740 BTC, worth over $46 billion.
To put this in perspective, there will only ever be 21 million Bitcoins in existence, and Strategy alone owns more than 2.2% of them. That’s a huge deal because it means one single company is controlling a significant chunk of Bitcoin’s entire supply.
How Did Strategy Afford This?
This latest Bitcoin shopping spree wasn’t funded with cash—it came from selling company shares:
- 516,413 shares of its Class A common stock (worth $179 million).
- 7.3 million shares of a special preferred stock (worth $563.4 million).
- This is all part of a bigger plan called the “21/21 Plan”, which aims to raise $42 billion for Bitcoin acquisitions.
Why Is This Important?
- Strategy is going all-in on Bitcoin: Instead of investing in traditional assets, it’s treating Bitcoin as its core business strategy.
- It’s setting a precedent: Other companies and institutions might follow suit, increasing Bitcoin’s adoption and making it a true financial powerhouse.
- It’s a high-risk, high-reward game: If Bitcoin prices soar, Strategy’s value will skyrocket. If Bitcoin crashes, it could face huge losses.
The Strategy Behind Strategy
- Rebranding with a Bitcoin Identity: On Wednesday, the company changed its name from MicroStrategy to Strategy and even redesigned its logo with a stylized ₿ symbol and orange color—a direct nod to Bitcoin.
- Huge Q4 2024 Losses: Despite this aggressive Bitcoin buying, Strategy reported a net loss of $670.8 million last quarter.
- Accounting Rules Work in Their Favor: A new Financial Accounting Standards Board (FASB) rule allows Strategy to report Bitcoin at its fair value. Before, companies had to record Bitcoin losses when prices dropped but couldn’t record gains when prices rose unless they sold. This rule change will give Strategy a $12.75 billion accounting boost.
Potential Risks: Can Strategy Pull This Off?
- Tax Uncertainty: The IRS might not agree with how Strategy is accounting for Bitcoin under the new FASB rules and the 2022 Inflation Reduction Act.
- Premium Valuation Concerns: Strategy’s stock price trades way above the actual value of the Bitcoin it owns, making some investors worried it’s overpriced.
- Debt and Equity Risks: The company relies heavily on raising money from investors to keep buying Bitcoin. If investors lose confidence, Strategy could be in trouble.
What This Means for Bitcoin’s Future
- If Strategy’s Bitcoin play succeeds, more companies may follow, driving up demand and price.
- If it fails, it could scare off institutional investors, making Bitcoin more volatile.
- Either way, this is one of the biggest bets on Bitcoin in history.
Right now, Strategy’s stock (MSTR) is up 518% over the past year and still rising. If Bitcoin keeps climbing, Strategy could become one of the most valuable companies in the world. But if Bitcoin stumbles, this bold move could turn into a financial disaster.
One thing is clear: Strategy is betting everything on Bitcoin. Will it pay off?
