MicroStrategy Continues Bitcoin-Buying Spree as Institutional Adoption Accelerates

Published 27/05/2025, 05:10

MicroStrategy Incorporated (NASDAQ:MSTR) has maintained its aggressive Bitcoin acquisition strategy, purchasing an additional 4,020 BTC for $427.1 million despite recent stock volatility. The company now holds 580,250 Bitcoin worth over $40 billion, cementing its position as the world’s largest corporate Bitcoin holder as the cryptocurrency trades at $110,055.26, up 2.88% as of 11:56 PM UTC on May 26, 2025.

MSTR: Relentless Bitcoin Accumulation Strategy Continues

MicroStrategy’s commitment to its Bitcoin-first treasury strategy remains unwavering, as evidenced by its latest acquisition of 4,020 BTC for $427.1 million at an average price of $106,237 per coin. This purchase was funded through three separate at-the-market (ATM) equity offerings conducted between May 19 and May 25, 2025, raising approximately $427 million in total.

The funding breakdown included $348.7 million from 847,000 Class A Common Shares, $67.9 million from 678,970 STRK Shares, and $10.4 million from 104,423 newly created STRF Shares. Remarkably, the company still has substantial firepower remaining, with over $44 billion in total available capacity across these offerings—$18.63 billion for MSTR, $20.72 billion for STRK, and $2.09 billion for STRF.

This latest acquisition brings MicroStrategy’s total Bitcoin holdings to 580,250 BTC, valued at $40.61 billion based on purchase cost, with an average acquisition price of $69,979 per coin. The company now controls 2.7% of Bitcoin’s total circulating supply, dwarfing other corporate holders like Marathon Digital’s 48,237 BTC (0.2% of total supply) and Riot Platforms’ 19,211 BTC (less than 0.1%).

MicroStrategy’s strategy reflects CEO Michael Saylor’s conviction that Bitcoin represents the superior store of value in an era of monetary debasement and fiscal uncertainty.

The company has effectively transformed itself from a traditional business intelligence software provider into what it calls “the original Bitcoin Treasury Company,” using innovative financial engineering to continuously acquire more Bitcoin without diluting shareholders’ Bitcoin exposure per share.

The company’s approach involves using equity offerings to fund Bitcoin purchases, creating what Saylor describes as a “Bitcoin acquisition machine” that allows shareholders to gain leveraged exposure to Bitcoin’s price movements while benefiting from the company’s ability to raise capital at favorable terms due to its unique positioning in the market.

Bitcoin and MSTR Navigate Market Volatility

As of 11:56 PM UTC on May 26, 2025, Bitcoin (BTC-USD) is trading at $110,055.26, up $3,082.50 or 2.88% from the previous close. The cryptocurrency has shown resilience, trading in a daily range of $108,803.85 to $110,288.02, with substantial trading volume of 45,864,873,056 BTC and a market capitalization of $2.18 trillion.

Bitcoin’s current price represents a significant recovery from recent volatility, with the cryptocurrency demonstrating its ability to maintain levels above the psychologically important $110,000 mark. The 52-week range of $49,121.24 to $111,970.17 shows the dramatic appreciation Bitcoin has experienced, with the current price near the upper end of this range.

The cryptocurrency’s strong performance comes amid growing institutional adoption and continued corporate treasury allocation strategies like MicroStrategy’s. With a circulating supply of 19.87 million BTC out of a maximum supply cap of 21 million, Bitcoin’s scarcity narrative continues to support long-term price appreciation as demand from institutional players increases.

Meanwhile, MSTR stock has experienced more volatility, closing at $369.51, down $29.95 or 7.50% at the most recent market close on May 23. The stock extended its decline in after-hours trading to $366.27, down an additional $3.24 or 0.88%. This represents a two-day decline following what appears to be profit-taking and market rotation.

Despite the recent pullback, MSTR’s long-term performance remains impressive. The stock is up 27.58% year-to-date, significantly outperforming the S&P 500’s decline of 1.34%. Over the past year, MSTR has gained 139.31% compared to the S&P 500’s 10.16% advance. Most remarkably, the stock has delivered 1,708.04% returns over three years and 2,919.61% over five years, reflecting the transformative impact of its Bitcoin strategy.

The company’s current market capitalization stands at $102.22 billion, with an enterprise value of $111.65 billion. Trading volume has been elevated at 21,448,767 shares, well above the average of 18,204,532, indicating heightened investor interest. The stock’s high volatility is reflected in options markets, with open interest of $73.97 billion and implied volatility at 76%.

MSTR’s financial metrics reflect its unique positioning as a leveraged Bitcoin play. With a Price/Sales ratio of 171.92 and minimal traditional earnings due to Bitcoin impairment accounting rules, investors are essentially betting on Bitcoin’s appreciation and MicroStrategy’s ability to continue accumulating the cryptocurrency.

The company maintains a relatively conservative leverage profile, with total debt and preferred stock accounting for just 10% of market cap and 16% of Bitcoin NAV, providing financial flexibility for continued acquisitions.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

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