Strategy (formerly known as MicroStrategy), once known primarily as a business intelligence and software company, has become one of the most prominent corporate players in the cryptocurrency space—not due to its technology, but because of a bold financial bet: turning Bitcoin into its primary reserve asset.

A Radical Bitcoin Strategy

Since 2020, under the leadership of Michael Saylor, MicroStrategy has adopted an unconventional corporate strategy—massively accumulating Bitcoin. As of late April 2025, the company holds over 550,000 BTC, valued at approximately $52 billion, accounting for more than 2.5% of the global supply of Bitcoin.

The most recent purchase came in April 2025, with MicroStrategy acquiring 15,355 BTC for a total of $1.42 billion at an average price of $92,737 per coin. This continues a long-term pattern of aggressive Bitcoin accumulation that has redefined the company’s identity.

Investment or Speculation?

The company’s stock (ticker: MSTR) is currently trading at a market capitalization of around $98 billion—almost double the value of its Bitcoin holdings. This significant premium has raised eyebrows among analysts, many of whom warn of overvaluation driven by investor hype and speculative momentum. In effect, the market is treating MSTR like a leveraged Bitcoin ETF, offering amplified exposure to Bitcoin’s price movements.

Funding Bitcoin Purchases Through Dilution

Rather than using business profits, MicroStrategy funds its Bitcoin purchases primarily through stock issuances. In its latest move, the company raised over $1.4 billion by issuing new common shares—diluting existing shareholders in the process. Yet, investor confidence appears unwavering, and the stock continues to surge.

High Returns Come with High Risk

Since the beginning of June 2024, MicroStrategy stock has soared by about 142%, compared to Bitcoin’s 40% rise over the same period. This performance illustrates the upside potential of the company’s leveraged strategy—but also its vulnerability. If Bitcoin crashes, the company’s valuation and stability could take a serious hit.

A Corporate Precedent in the Crypto World

MicroStrategy is now seen as the ultimate proxy for institutional Bitcoin exposure. While some governments are experimenting with Bitcoin as a reserve asset, no publicly traded company matches MicroStrategy’s exposure. Michael Saylor remains a vocal advocate of Bitcoin, but mounting leverage and market volatility may test investor patience in the future.

Conclusion

MicroStrategy represents both innovation and risk. It stands at the intersection of traditional finance and digital assets, offering a glimpse into how corporations might engage with crypto in the years ahead. For now, it’s a bold success story—but in such a volatile market, things could change quickly.