Strategy Inc. shifted treasury to Bitcoin, with CEO predicting $5 million per Bitcoin
From Nasdaq
April 9, 2025 7:30 am:
Strategy Inc. (NASDAQ: MSTR) made waves by being the first company to shift its treasury to Bitcoin, purchasing 21,454 Bitcoins in 2020. The move has been emulated by other companies like Block Inc. (NYSE: XYZ) and MercadoLibre Inc. (NASDAQ: MELI), raising questions about Strategy’s commitment to cryptocurrency.
CEO Mike Saylor’s journey from a Bitcoin critic to a diehard supporter has been remarkable. Previously dismissing Bitcoin as a gimmick, Saylor now believes it will replace gold as the dominant store of value, with a long-term target of $5 million per Bitcoin.
Strategy’s rationale for Bitcoin purchases has been to hedge against inflation and a falling U.S. dollar. The company now holds approximately 70,470 Bitcoins worth around $1.125 billion, legitimizing corporate Bitcoin holdings and inspiring others like Tesla Inc. (NASDAQ: TSLA) to follow suit.
As Strategy transforms into the world’s first Bitcoin Treasury Company, concerns about dilution arise due to increased share count and rising debt. Despite insider purchases, Strategy’s future growth is tied to its ambitious plan to own $150 billion of Bitcoin funded by capital raises through 2027.
Saylor predicts Bitcoin will reach $5 million per coin, citing three catalysts: approval of spot Bitcoin ETFs, banks custodying Bitcoin, and more companies holding Bitcoin as a treasury asset. This trend is evident as companies like GameStop Co. (NYSE: GME) also invest in Bitcoin, linking stock prices to cryptocurrency performance. 1. MicroStrategy (NASDAQ: MSTR) reported a 13% increase in revenue for the second quarter, reaching $596.1 million, beating analyst expectations. The company also announced a $500 million investment in Bitcoin, bringing their total holdings to over 100,000 bitcoins.
2. MicroStrategy’s CEO, Michael Saylor, remains bullish on Bitcoin, citing it as a reliable store of value amidst inflation concerns. The company’s stock price has surged over 100% since the initial Bitcoin investment in 2020, demonstrating the positive impact on shareholder value.
3. With the recent investment, MicroStrategy now holds approximately $5.1 billion worth of Bitcoin, making them one of the largest corporate holders of the cryptocurrency. Saylor believes Bitcoin will continue to outperform traditional assets, driving further growth for the company and its shareholders.
Read more at Nasdaq.: Strategy’s $5 Million Bitcoin Target: Beacon or Bagholder?