MicroStrategy invests another $960 million! Bitcoin holdings surpass 660,000, reaching a new all-time high

MicroStrategy (MSTR) Chairman Michael Saylor announced on X that the company purchased 10,624 bitcoins last week at an average price of $90,615 per coin, totaling approximately $962.7 million. This acquisition brings MicroStrategy’s total bitcoin holdings to 660,624 coins, with a total purchase cost of about $4.935 billion and an average price of $74,696 per bitcoin.

The Structure Behind the 660,000 Bitcoin Milestone

(Source: MicroStrategy)

This latest purchase pushes MicroStrategy’s bitcoin holdings past the 660,000 coin mark—a significant milestone since the company began its bitcoin strategy in August 2020. 660,624 bitcoins represent about 3.15% of the total 21 million bitcoin supply, making MicroStrategy the world’s largest corporate bitcoin holder, far surpassing other public companies.

From a cost structure perspective, MicroStrategy’s average purchase price is $74,696 per bitcoin, while the current bitcoin price is around $90,774, meaning the overall holdings have an unrealized gain of about 21.5%. According to real-time tracking from BitcoinTreasuries.NET, the current market value of MicroStrategy’s bitcoin holdings is about $6 billion, more than $1.06 billion above its $4.935 billion total cost—an unrealized return of 22%, which is quite impressive in the current market.

However, this return is much lower than the gains from its earliest holdings. MicroStrategy’s first bitcoin purchase was in August 2020, when the price was only about $11,000. If calculated separately, the return on these early holdings has exceeded 700%. But as the company continued to buy in, especially with large purchases at high prices in 2024 and 2025, the overall average cost was pushed higher, reducing the total return. This cost dilution is an inevitable outcome of any ongoing dollar-cost averaging strategy.

In terms of funding sources, MicroStrategy didn’t use its own cash flow to purchase bitcoin, but instead raised capital through convertible bonds, equity financing, and leveraged loans. This strategy allowed the company to expand its bitcoin holdings without depleting operating funds, but it also increased financial risk. As of now, MicroStrategy’s debt totals several billion dollars, most of which is directly related to bitcoin purchases.

Saylor’s “Digital Capital” Strategy Pitches Institutions

At Monday’s Bitcoin Middle East & North Africa event in Abu Dhabi, Saylor said he has been meeting with sovereign wealth funds and various investors—including banks and family office managers—to discuss bitcoin. “By the way, my message is very direct. My message is: we now have digital capital. Bitcoin is digital capital; it’s digital gold,” Saylor said. “Beyond digital capital, we have a new asset class called digital credit. Digital credit eliminates capital volatility and provides yield.”

Saylor’s “digital capital” narrative is the theoretical foundation of MicroStrategy’s bitcoin strategy. He likens bitcoin to gold in the digital era, arguing that its scarcity (21 million supply cap), decentralized nature, and global liquidity make it an ideal store of value. In traditional finance, gold as “physical capital” plays a key role in central bank and sovereign wealth fund asset allocation. Saylor believes bitcoin as “digital capital” will play a similar role in the future financial system.

Going further, Saylor introduced the concept of “digital credit”—credit products collateralized by bitcoin, such as bitcoin-backed loans and bitcoin-backed bonds. These products use pledged bitcoin to eliminate price volatility for both borrowers and lenders, while providing yield for holders. MicroStrategy itself practices this model; its convertible bond issuance is essentially a credit instrument implicitly backed by its bitcoin holdings.

Saylor is pitching this theory to sovereign wealth funds and banks, hoping to persuade institutional investors to include bitcoin in their asset allocations. Sovereign wealth funds manage trillions of dollars—if even 1% were allocated to bitcoin, it would generate tens of billions of dollars in demand. Some Middle Eastern sovereign funds have already shown interest; institutions like MGX in Abu Dhabi have invested in bitcoin-related projects, lending credibility to Saylor’s pitch.

$1.44 Billion Financing to Address Market FUD

MicroStrategy recently raised $1.44 billion to dispel market fear, uncertainty, and doubt (FUD). According to CEO Phong Le, the market was concerned whether the company could continue servicing its debt and payment obligations if its share price fell sharply. He said, “There were rumors spreading that we couldn’t meet our dividend obligations, which led to people shorting bitcoin.”

This $1.44 billion financing was a direct response to market skepticism. As the stock price fell sharply from its highs, concerns grew about the company’s financial health. Since MicroStrategy’s business model relies heavily on bitcoin prices, a bitcoin crash coupled with the inability to service debt could force the company to sell bitcoin at low prices, triggering a vicious cycle. These concerns spread on social media and financial forums, with rumors of a looming liquidity crisis.

The $1.44 billion capital injection eased these concerns. It strengthened MicroStrategy’s balance sheet, ensuring enough short-term cash flow to service maturing debt and maintain operations. More importantly, it signaled to the market that MicroStrategy can still access capital markets and that institutional investors remain confident in its bitcoin strategy.

Cantor previously cut MicroStrategy’s target price by 60%, but also told clients that fears of a forced sale were exaggerated. Analysts noted that most of MicroStrategy’s debt is in convertible bonds, whose holders are incentivized to convert to equity rather than demand cash repayment, as this allows them to participate in potential appreciation of the company’s bitcoin holdings. Moreover, these convertible bonds usually have high conversion prices, making conversion attractive only if the stock price rises significantly, which reduces short-term repayment pressure.

The Divergence Between Stock Price and Holding Gains

Despite MicroStrategy’s share price recently trading at around $178.99, down 51% over the past 12 months, the company still holds several billion dollars in unrealized bitcoin gains. This divergence between the stock price and the value of its holdings is the most puzzling part of MicroStrategy’s investment logic.

Theoretically, MicroStrategy stock should reflect the value of its bitcoin holdings. The company owns 660,624 bitcoins, currently worth about $6 billion; subtracting the $4.935 billion cost, that’s about $1.06 billion in net asset appreciation. But MicroStrategy’s market capitalization (stock price multiplied by total shares) is well below the net value of its bitcoin holdings, meaning the market is applying a significant discount.

There are several reasons for this discount. First, debt risk: MicroStrategy carries billions in debt, which amplifies downside risk if bitcoin prices fall. Second, management risk: the market worries that Saylor’s aggressive bitcoin strategy could put the company in jeopardy under extreme market conditions. Third, liquidity risk: while MicroStrategy’s bitcoin holdings are highly valuable, liquidating them quickly could impact the market.

Nevertheless, Saylor continues to reaffirm his confidence in bitcoin, recently stating on social media that he will “never give up” on his bitcoin investment. This steadfast stance provides long-term investors with confidence, but also heightens concerns among short-term speculators.

Aggressively Buying Against a Backdrop of Cooling Industry Inflows

MicroStrategy’s latest bitcoin purchase comes as digital asset treasuries (DATs) experienced their weakest month ever in November. According to DefiLlama, DATs saw just $1.32 billion in inflows that month, down 34% from October. Bitcoin-focused companies received over $1 billion in inflows this month, with MicroStrategy spending $835 million on bitcoin on November 17. Meanwhile, Ethereum-focused DATs saw outflows totaling $37 million.

Against a backdrop of sharply cooling industry inflows, MicroStrategy’s continued large-scale bitcoin purchases demonstrate the independence and conviction of its strategy. Such contrarian moves could be a bottom-fishing opportunity—or a risk of catching a falling knife. The final outcome will depend on bitcoin’s long-term trajectory.