Expert Reveals MicroStrategy’s Bitcoin Buying Strategy for 2025

The post Expert Reveals MicroStrategy’s Bitcoin Buying Strategy for 2025 appeared first on Coinpedia Fintech News

Under Michael Saylor’s leadership, MicroStrategy has become synonymous with Bitcoin investing, consistently purchasing the cryptocurrency since 2020. Recently, the company has intensified its acquisitions, capitalizing on Bitcoin’s rally past $99,000 following Donald Trump’s presidential win earlier this month.

Yet Another Bitcoin Purchase

Just last week, MicroStrategy purchased another 55,000 bitcoins (BTC-USD) last week for $5.4 billion as the world’s largest cryptocurrency was trading at all-time highs.

MSTR has been in the spotlight in recent weeks due to its continuing large BTC acquisitions and a run-up in its share price. Notably, a 515% increase this year briefly took it into the top 100 largest U.S. publicly traded companies by market cap. 

Notably, this purchase comes as MicroStrategy last week completed its latest sale of convertible debt, raising $3 billion on the note due 2029 with a 0% coupon and a 55% conversion premium.

Investor Projects Big Moves Ahead

Fred Krueger, a prominent Bitcoin advocate, shared projections on X (formerly Twitter) regarding MicroStrategy’s plans for 2024. According to his analysis, the company may purchase $30 billion or more worth of Bitcoin next year, matching or even exceeding the Bitcoin bought by ETFs in 2024.

I've done some modeling of the next year of MSTR ATM issuance and Convert Issuance.

I'll share the details in a few days once a few sharp pencils check the analysis.

But the broad strokes are clear.

1. MSTR is going to be buying a lot of Bitcoin next year. Probably on par (30…

— Fred Krueger (@dotkrueger) November 26, 2024

Krueger believes this aggressive buying will fuel Bitcoin’s rally, potentially driving its price to $200,000 or beyond. He also highlighted that MicroStrategy’s strategy to increase Bitcoin holdings per share offers existing shareholders significant protection against market value declines.

However, he advised against replacing direct Bitcoin holdings with MicroStrategy stock due to tax implications.

Debt Not an Immediate Concern

Addressing concerns about MicroStrategy’s debt, Krueger noted it poses little risk for the next two to three years, even if the market turns bearish.

While he acknowledged uncertainties beyond 2025, including potential bear markets and competition over Bitcoin reserves, he encouraged investors to focus on the next 12 months, which he sees as critical for Bitcoin’s growth and MicroStrategy’s role in the market

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If the predictions hold true, both Bitcoin and MicroStrategy are poised to make history once again.

FAQs Why is MicroStrategy buying so much Bitcoin?

MicroStrategy buys Bitcoin to strengthen its position as a Bitcoin proxy and benefit from Bitcoin’s long-term value growth.

How much Bitcoin has MicroStrategy bought recently?

MicroStrategy purchased 55,000 Bitcoins for $5.4 billion, capitalizing on Bitcoin’s all-time highs.

What impact will MicroStrategy’s Bitcoin purchases have on the market?

MicroStrategy’s Bitcoin buys are expected to drive Bitcoin’s rally, potentially pushing prices toward $200K.