Strategy Buys More Bitcoin, Now Holds Over 500K BTC

Strategy, previously known as MicroStrategy, has once again expanded its Bitcoin portfolio. CEO Michael Saylor announced the company acquired 6,911 BTC for $584 million, pushing its total holdings past 500,000 Bitcoin. This move, made during a period of rising BTC prices, boosted investor confidence across the crypto market.

Saylor stated the purchase was funded through the company’s STRK perpetual security, a debt-based financial tool recently launched to support ongoing Bitcoin acquisitions. The company increased its recent stock offering by over $200 million to make this buy possible. However, this aggressive accumulation strategy also raises long-term concerns.

Strategy now holds more than 506,000 BTC, acquired at an average price near $66,000 per coin. This total represents over $33 billion in value, making the company one of the largest Bitcoin holders in the world. The latest purchase underlines Strategy's unwavering belief in Bitcoin's long-term value and its role in building digital financial infrastructure.

But the firm's Bitcoin play isn't without risks. Strategy heavily depends on debt financing to continue acquiring BTC. Despite the bullish impact on market sentiment, this approach has resulted in ongoing negative cash flow. Many in the crypto space see Strategy’s buying activity as a key market signal—if that ever slows or reverses, confidence could quickly fade.

Selling even a small portion of Strategy’s Bitcoin reserves could severely shake the market. Analysts warn that any forced liquidation, especially during a BTC downturn, would be interpreted as a very bearish signal. With the company so publicly committed to holding, any deviation from this stance could send shockwaves.

Another concern lies in tax exposure and future obligations. While BTC’s price recovery has helped the firm stay afloat, the pressure to maintain investor trust remains high. The current strategy hinges on Bitcoin’s continued rise. If prices fall significantly, Strategy’s large debt position could become a major liability.

Still, as of now, Bitcoin is gaining momentum, and Strategy’s consistent buying has become a stabilizing force in the crypto ecosystem. Since late 2024, the company’s purchases have accelerated—even as prices hit new highs—signaling Saylor’s dedication to supporting BTC.

While Strategy’s bold stance continues to excite crypto advocates, it also ties the company’s future closely to Bitcoin’s success. The risk is high, but for now, Strategy remains one of the strongest institutional backers of the digital asset.