Despite the increasing volatility of the cryptocurrency market, Michael Saylor’s Strategy continues to expand its Bitcoin holdings. Most recently, the firm revealed substantial acquisitions of Bitcoin. The news comes as traders still weigh the geopolitical risks for the largest crypto asset.
On Monday, March 31, 2025, Strategy, formerly MicroStrategy, revealed that it had acquired 22,048 BTC between March 24 and March 30. The acquisition cost the firm $1.92 billion, with an average price of $86,969 per Bitcoin.
Strategy raised funds for the acquisition by selling 3,645,528 shares of its Class A common stock, netting the company $1.20 billion. This is part of Strategy’s bid to leverage its share price to expand its Bitcoin holdings, which now make it the largest single holder of the asset.
MicroStrategy’s Big Bet on Bitcoin
For this reason, the company is seeing significant volatility, closely mirroring the BTC price. The company’s shares are currently trading at $291.97, down from $473 at last year’s November highs. Notably, this period came before the Bitcoin price reached its ATH of $109,114 in January.
Although Strategy posted a loss of $670.8 million, or $3.03 per share, in the fourth quarter of 2024, the company’s stock was up 71.46% in the past year, outperforming BTC. The most likely reason for this financial outperformance is that Strategy acquired its Bitcoin holdings using leverage.
While BTC constitutes most of the company’s assets, its shares trade at a multiple of its BTC holdings. CEO Michael Saylor states that this presents an arbitrage opportunity, enabling the firm to generate shareholder value.
At the same time, the company is using debt to fund its Bitcoin acquisitions, which some analysts view as a high-risk strategy. This strategy worked well in the past when the company could get cheap financing from investors. However, this could change in the future, especially if Bitcoin sees more volatility.
Furthermore, if the price of BTC falls beyond a certain level, Strategy could have issues repaying its debts to creditors.
READ MORE: Chainlink Payment Abstraction Launches on Mainnet, Enabling Fees Conversion into LINK
