MicroStrategy is poised to make yet another significant acquisition of Bitcoin, aiming to surpass its recent purchase worth $1.25 billion. This announcement came on January 18, when Michael Saylor shared a graphic on the social media platform X, which many analysts interpreted as a clear signal that the company intends to acquire more than the 13,627 Bitcoin it recently added to its holdings.
This latest acquisition would bring MicroStrategy“s total Bitcoin holdings to over 700,000 coins, solidifying its status as the largest corporate holder of Bitcoin. If successful, this move would position the firm”s treasury close to that of BlackRock”s IBIT exchange-traded fund and the estimated 1.2 million Bitcoin held by Satoshi Nakamoto, the elusive creator of the Bitcoin network.
The timing of this aggressive strategy is notable, given that MicroStrategy experienced a tumultuous year, with its stock price dropping over 50%. The market-to-net-asset-value (mNAV) premium has also significantly declined, currently sitting at around 1.0x. This change raises concerns about the arbitrage model that Saylor has historically relied upon to finance acquisitions.
As institutional investors increasingly gravitate towards spot Bitcoin ETFs, which provide a more straightforward investment route without the complexities and premiums associated with MicroStrategy“s shares, the company is facing challenges in leveraging its previous advantages.
To maintain its aggressive accumulation strategy, MicroStrategy has turned to alternative funding mechanisms. Over the past year, the company has raised $25 billion through common stock sales and the introduction of new preferred shares, including the STRC type.
Despite these strategies, reactions from Wall Street have been cautious. Recently, TD Cowen downgraded its price target for MicroStrategy stock from $500 to $440, while still maintaining a Buy rating. This revision was influenced by a noted decrease in the “Bitcoin Yield” for fiscal 2026, a proprietary metric that assesses Bitcoin exposure per share. Analysts have pointed out that the company”s strategy of issuing more equity to fund further Bitcoin acquisitions is diluting this yield for existing shareholders.
Some market analysts suggest that despite the skepticism surrounding its funding methods, MicroStrategy may have developed a structural advantage that traditional financial institutions may struggle to match. There is an ongoing discourse about the regulatory and market challenges facing the firm, which some believe reflect the effectiveness of its established model rather than its shortcomings.
