At the time of Bitcoin's sharp decline, "big holder" MicroStrategy (MSTR.US) decisively buys in! Shouting "Buying coins and abandoning debts"
14/01/2025
GMT Eight
speech, MicroStrategy powerfully declares its intention to stabilize the recent Bitcoin price drop caused by the sharp rise in US bond yields. The company, known as a "big holder" of Bitcoin, boldly chose to buy Bitcoin during this period of continued downturn, reassuring fans in the global currency circle that they are committed to stabilizing the recent trend of Bitcoin price drops. MicroStrategy, as a "big holder" of Bitcoin, made a strong move to bottom out the market, finally stabilizing the price of Bitcoin and halting the continuous drop since last Friday.
At the same time, MicroStrategy's co-founder and chairman, Michael Saylor, stated in a speech on Monday in the Eastern United States: "The cash reserves of major companies should be used to buy Bitcoin, rather than being obsessed with holding and buying fixed income assets like bonds, which are a 'toxic' asset." This is the view of MicroStrategy's "captain" Saylor, who elevates Bitcoin to the same level as New York and its economic engine of growth, praising Bitcoin as the next explosive market view after calling it the "Manhattan of the Internet".
With approximately $41 billion worth of Bitcoin, MicroStrategy is truly deserving of the title "big holder". Following the bull market of Bitcoin in 2024 due to its large Bitcoin holdings, the company's stock price skyrocketed, rising by 50% since Trump's victory in November, and a staggering 360% throughout 2024. Currently, MicroStrategy's total market value is $81 billion, far exceeding the market value of the Bitcoin it holds, making it the most aggressively rising "Bitcoin concept stock" globally.
Saylor, MicroStrategy's "captain," spoke at the ICR conference in Orlando and compared the returns of Bitcoin and bond assets since 2020. He showed a slide at the conference demonstrating that since the company adopted the strategy of buying Bitcoin, the value of the cryptocurrency has risen significantly, while bond assets led by US bonds have fallen.
"This strategy applies to any company," Saylor said in his keynote address at this retail-themed conference, where the room was packed with executives from major companies and investment institutions. "Every company has a choice: stick to the past, i.e. buying government bonds to increase asset value, while also executing buybacks and dividends, or embrace the future, i.e. using Bitcoin as digital capital to achieve asset returns."
The "big holder" of Bitcoin has purchased Bitcoin for ten consecutive weeks
Saylor's comments come after MicroStrategy disclosed its latest purchase of Bitcoin, reporting that it had bought $243 million worth of cryptocurrency, marking the tenth consecutive week of buying Bitcoin. This move has greatly helped stabilize the price of Bitcoin after experiencing a significant drop.
Affected by the sharp rise in the 10-year US Treasury yield, known as the "anchor of global asset pricing," investors have been selling high-risk assets, causing the price of Bitcoin to drop to its lowest level in nearly two months at one point this week. On Monday, Bitcoin fell by 5.3%, reaching $89,329, the lowest level since November 18, far from the high of $108,316 in December. Other cryptocurrencies saw even larger declines, with Ethereum and Solana falling by up to 10%. MicroStrategy's purchase of Bitcoin can be seen as a "protection" operation, narrowing the drop in Bitcoin prices, which are currently hovering around $94,399, almost the same as the previous trading day.
Statistics show that during the period from January 6 to 12, MicroStrategy bought about 2,530 Bitcoins for $243 million in cash, with an average price of around $95,972 per Bitcoin. As of January 12, the company holds about 450,000 Bitcoins, with a total purchase price of $28.2 billion, with an average purchase price of approximately $62,691 per Bitcoin. The funds used to purchase Bitcoin came from the issuance and sale of stocks, with the company selling 710,425 shares of stock for approximately $243 million between January 6 and 12.
"We build with steel, while they build with wood," Saylor said in his speech, criticizing major US tech giants, including Microsoft Corporation, for not following MicroStrategy's lead in buying Bitcoin, and urging these companies to invest their cash reserves in cryptocurrency rather than bonds. A slide in his presentation showed that 70 companies hold Bitcoin reserves.
"What are the downsides? Well, you will only become rich," Saylor said in his speech.
As of the close of U.S. stock markets on Monday, MicroStrategy's stock price reversed its downward trend, rising about 13% year-to-date to $328.40 per share, while Bitcoin prices fell about 2% during the same period.
The Virginia-based software provider currently holds more than 2% of the total Bitcoin supply. MicroStrategy's holdings of original cryptocurrency are valued at approximately $41 billion.
"Do the right thing for your family, your country, and your investors, which is to allocate Bitcoin," Saylor concluded his speech, which lasted over 50 minutes.
Even some financial pundits have called MicroStrategy "the most successful investment bank in human financial history," as the company has continued to thrive on the brink of bankruptcy, thanks to the investor frenzy fueled by its large holdings of Bitcoin, leading to a current total market value of $80 billion. This company truly deserves this title.
Four years ago, MicroStrategy's co-founder Saylor made the determination to lead this small enterprise software manufacturer, which had long been on the brink of bankruptcy, onto a different path - the path of betting on the rising value of Bitcoin. In hisUnder his leadership, MicroStrategy has accumulated over $40 billion worth of Bitcoin in the past four years. The fact has proven Saylor right, as the price of Bitcoin has increased from around $10,000 to $100,000 in the four years, a tenfold increase.Wall Street is cheering for the "Bitcoin bull market," with hopes of reaching $200,000 by 2025.
The sentiment on Wall Street towards Bitcoin is very strong, with analysts generally believing that the incredible fundraising power of Bitcoin ETFs, and more importantly, the possibility of looser cryptocurrency regulations under the Trump administration, could help drive the price of Bitcoin to new highs in 2025.
Trump has emphasized multiple times that he wants to make the U.S. the "capital of cryptocurrency" and a "Bitcoin superpower." This support from Trump and members of the new U.S. administration is fueling the growing demand for digital asset funds, such as Bitcoin ETFs and Ethereum ETFs, and cryptocurrency derivatives globally.
The well-known investment firm Bernstein recently released a report predicting that the price of Bitcoin, the largest cryptocurrency by market cap, will continue its "super bull market curve" this year, forecasting triple-digit price increases by 2025. They have dubbed 2025 as the "Infinity Age" of the cryptocurrency sector, with Bitcoin reaching the historic milestone of $200,000.
Since the successful launch of the Bitcoin ETF in 2024, Bernstein has been consistently bullish on the price of Bitcoin, leading the way in the cryptocurrency bull market. Analyst Gautam Chugani from Bernstein described the "Infinity Age of cryptocurrencies" as "a very long period characterized by the continuous evolution, iteration, and widespread acceptance of the cryptocurrency system, ultimately reaching a point where cryptocurrencies are no longer disputed. We believe it will eventually become a part of an innovative financial system built entirely for the new intelligent age."
Bernstein estimates that the inflow of enterprise-level funds will reach approximately $50 billion by 2025, compared to $24 billion in 2024, with companies like MicroStrategy, known as "Bitcoin whales" and "Bitcoin shadow stocks," remaining key participants. The $200,000 target price provided by Bernstein does not take into account the demand from government-led investment institutions or sovereign wealth funds, but rather focuses on the investment needs of private investment institutions, individuals, and companies.
Bernstein also predicts that the Bitcoin ETFs in the U.S. stock market this year (led by BlackRock, Inc.'s iShares Bitcoin ETF IBIT) will attract over $70 billion in net inflows, expected to be significantly higher than the $35 billion in 2024. This will be a key driving force behind Bitcoin's push towards the $200,000 mark in 2025.
Geoff Kendrick, the Global Head of Digital Asset Research at Standard Chartered Bank, who accurately predicted Bitcoin reaching $100,000 by the end of 2024, recently stated that by the end of 2025, Bitcoin's price will reach $200,000. CoinShares believes that the more favorable regulatory environment in the U.S. in 2025 will be a major driving force behind the bullish Bitcoin market, with Bitcoin potentially reaching $250,000 in the long run.