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Nidhi Kolhapur
Nidhi Kolhapur
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Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Nov 26, 2024 13:31 UTC
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Expert Reveals MicroStrategy’s Bitcoin Buying Strategy for 2025
MicroStrategy, led by Michael Saylor, has been aggressively buying Bitcoin since 2020.
The company recently acquired 55,000 Bitcoins for $5.4 billion, leveraging a $3 billion debt financing to fuel these purchases.
Analyst Fred Krueger predicts significant Bitcoin buying by MicroStrategy in the next year, potentially surpassing ETF purchases and driving Bitcoin's price to $200,000.
Under Michael Saylor’s leadership, MicroStrategy has become synonymous with Bitcoin investing, consistently purchasing the cryptocurrency since 2020. Recently, the company has intensified its acquisitions, capitalizing on Bitcoin’s rally past $99,000 following Donald Trump’s presidential win earlier this month.
Yet Another Bitcoin Purchase
Just last week, MicroStrategy purchased another 55,000 bitcoins (BTC-USD) last week for $5.4 billion as the world’s largest cryptocurrency was trading at all-time highs.
MSTR has been in the spotlight in recent weeks due to its continuing large BTC acquisitions and a run-up in its share price. Notably, a 515% increase this year briefly took it into the top 100 largest U.S. publicly traded companies by market cap.
Notably, this purchase comes as MicroStrategy last week completed its latest sale of convertible debt, raising $3 billion on the note due 2029 with a 0% coupon and a 55% conversion premium.
Investor Projects Big Moves Ahead
Fred Krueger, a prominent Bitcoin advocate, shared projections on X (formerly Twitter) regarding MicroStrategy’s plans for 2024. According to his analysis, the company may purchase $30 billion or more worth of Bitcoin next year, matching or even exceeding the Bitcoin bought by ETFs in 2024.
Krueger believes this aggressive buying will fuel Bitcoin’s rally, potentially driving its price to $200,000 or beyond. He also highlighted that MicroStrategy’s strategy to increase Bitcoin holdings per share offers existing shareholders significant protection against market value declines.
However, he advised against replacing direct Bitcoin holdings with MicroStrategy stock due to tax implications.
Debt Not an Immediate Concern
Addressing concerns about MicroStrategy’s debt, Krueger noted it poses little risk for the next two to three years, even if the market turns bearish.
While he acknowledged uncertainties beyond 2025, including potential bear markets and competition over Bitcoin reserves, he encouraged investors to focus on the next 12 months, which he sees as critical for Bitcoin’s growth and MicroStrategy’s role in the market
If the predictions hold true, both Bitcoin and MicroStrategy are poised to make history once again.
FAQs
MicroStrategy buys Bitcoin to strengthen its position as a Bitcoin proxy and benefit from Bitcoin’s long-term value growth.
MicroStrategy purchased 55,000 Bitcoins for $5.4 billion, capitalizing on Bitcoin’s all-time highs.
MicroStrategy’s Bitcoin buys are expected to drive Bitcoin’s rally, potentially pushing prices toward $200K.
Yes 
No 
