MicroStrategy Significantly Expands Bitcoin Holdings Amid Market Volatility

MicroStrategy (Strategy) has announced a significant purchase of 6,556 Bitcoin for over $555 million, increasing its total holdings to 538,200 Bitcoin valued at $47 billion. Despite market volatility and a downturn in equities, Bitcoin’s price has risen. Other companies, like Metaplanet, are also making Bitcoin investments. Experts caution that late entrants to Bitcoin investment may face greater risks due to price volatility.

Bitcoin-focused firms have been particularly active recently. MicroStrategy, rebranded as Strategy, has substantially increased its Bitcoin acquisitions, purchasing 6,556 Bitcoin for over $555 million in a recent transaction. This follows a previous $286 million purchase, bringing their total holdings to 538,200 Bitcoin, with an average acquisition price of $67,766—amounting to a total expenditure of approximately $36 billion and a current valuation of $47 billion.

Despite ongoing volatility in equities due to the escalating US-China trade tensions, Bitcoin has demonstrated resilience, gaining roughly 3% since President Trump announced tariffs on April 2. On the following Monday, Bitcoin prices rose about 4%, briefly reaching over $88,000, whereas the S&P 500 Index dropped by 2.79%.

Interestingly, Matthew Sigel, head of digital assets research for Van Eck, notes that Strategy’s buying activities do not significantly impact Bitcoin’s price trends. He asserted that weekly purchase volumes by Strategy show little correlation with price fluctuations. Nonetheless, Strategy remains undeterred, actively pursuing further Bitcoin acquisitions. In a recent update, the firm reported its earlier purchase of $286 million worth of Bitcoin.

Currently, Strategy is the largest publicly traded Bitcoin holder, outstripped only by exchange-traded funds like BlackRock’s iShares Bitcoin Trust, which holds around 570,983 Bitcoins valued approximately at $48 billion. Market analysts project that Strategy’s stock price, presently at $319.49, could reach $600 by year’s end, elevating its market status above prominent financial entities like Charles Schwab and Citigroup.

Other companies are also investing in Bitcoin. For instance, Tokyo-based Metaplanet announced a $56 million acquisition of 649 Bitcoin. Metaplanet, which has pivoted to become a Bitcoin treasury company, also manages a hotel division and holds an affiliation with Bitcoin Magazine in Japan. CEO Simon Gerovich has revealed aspirations to accumulate 10,000 Bitcoins by the end of 2025.

However, new entrants in Bitcoin acquisition face considerable risks due to the asset’s notorious volatility. Firms that haven’t invested early enough may find themselves struggling to recoup earlier losses during market downturns. Conversely, GameStop has recently seen a significant rise in its stock price after announcing a similar strategy focusing on Bitcoin reserves.