Ripple’s Chief Technology Officer (CTO), David Schwartz, made a bold statement saying that MicroStrategy’s fate is heavily dependent on the price of Bitcoin. The comment came amid speculation and rumors about MSTR’s future and questions regarding its substantial BTC holdings.
In a recent post on X (formerly Twitter), Schwartz suggested that BTC’s price directly impacts MSTR’s overall strategy because the company is essentially making a leveraged bet on Bitcoin’s price movements.
According to MSTR chairman Michael Saylor, between August 11 and August 17, the company bought an additional 430 tokens worth around $51.4 million. Saylor noted that the company’s BTC position has generated a 25.1% yield so far in 2025.
Watching this acquisition closely, Schwartz wrote, “I don’t think it’s controversial that holding MicroStrategy won’t turn out well if Bitcoin trends downward and that it’s generally like a leveraged long type position.”
When Bitcoin’s price rises, MSTR’s equity value increases because the company uses leverage (debt) to amplify gains. Conversely, if the price falls, this negatively affects the company’s value and financial health.
As of August 18, 2025, MicroStrategy owns 629,376 bitcoins with a total cost of $33.139 billion USD. Since the company holds this massive amount of BTC on its balance sheet, its performance is strongly influenced by price fluctuations. The company’s stock behaves like a leveraged long position on Bitcoin, meaning it tends to gain more than Bitcoin when the price rises but also experiences greater losses when the price declines.
Since Trump’s election in November, MicroStrategy has more than doubled its holdings by acquiring approximately 376,726 Bitcoin in nine months. The firm remains the largest corporate Bitcoin holder, with its holdings constantly expanding.
MicroStrategy co-founder Michael Saylor has hinted at another Bitcoin acquisition, as BTC’s price hovers around $114,846. The company’s latest purchase was on Monday, adding 155 Bitcoin for $18 million. It now holds ten times more Bitcoin than the next largest corporate holder.
Saylor stated, “This investment reflects our belief that Bitcoin, as the world’s most popular cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
As of August 18, 2025, MicroStrategy holds 629,376 bitcoins, making it the largest corporate holder of BTC by a significant margin.
MicroStrategy’s strategy is to acquire Bitcoin using borrowed funds (leverage). This means that while it stands to gain more than Bitcoin during a rally, it also faces a higher risk of greater losses if the price drops.
Because its balance sheet is dominated by its massive Bitcoin holdings, the company’s stock value is heavily influenced by the cryptocurrency’s price movements. The stock performance mirrors the volatility of a leveraged bet on Bitcoin.
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