- 2025 could be the year that proves if Saylor’s bold strategy works or not
- MicroStrategy’s shrinking profitability could put a serious dampener on its Bitcoin buying spree
Michael Saylor, Co-founder of MicroStrategy, is continuing to demonstrate his commitment to Bitcoin [BTC]. From massive acquisitions to bold promises of continuous buying, and clever strategies to fund his growing Bitcoin stash, he’s always in the headlines.
Now, in his latest post, Saylor has sparked fresh speculation about his next BTC purchase. Will it be a much-needed ‘New Year’ boost for anxious investors, or just another bold risk he’s willing to take?
Either way, the stakes are higher than you might think – So, keep an eye on this.
Michael Saylor – The savior of Bitcoin or MSTR?
Michael Saylor’s business model is as clear as day – It’s all about Bitcoin. With a staggering 444,262 Bitcoins in its treasury, it’s no wonder that even a ‘sell-the-news’ event involving MicroStrategy could send shockwaves through the market.
However, here’s the real story – It’s not just talk. In 2024 alone, MicroStrategy made 13 Bitcoin purchases, with the biggest bombshell dropping in mid-November. That’s when the company scooped up a staggering 55,000 BTC in a single transaction, pouring $5.4 billion into the digital asset.
Source : Bitcoin Treasuries by BitBo
Coincidence or not, this massive accumulation happened just as Bitcoin’s price took a sharp dive – Posting a 5% daily drop. But make no mistake, Microstrategy knew exactly what it was doing.
MSTR, the publicly traded stock of MicroStrategy, was riding high on the “Trump pump,” after Microstrategy executed three huge BTC buys in three consecutive weeks following the election.
The result? Its stock skyrocketed to an all-time high of $504 on 20 November, its peak for the month. Clearly, it’s safe to say that MicroStrategy’s Bitcoin purchases have had a direct impact on MSTR’s stock valuation.
Alas, here’s the twist – Bitcoin hasn’t been kind lately. After crashing from $108k per BTC to $93k at press time, MSTR has felt the impact. Now trading at $330, MSTR has fallen by a staggering 34% in just two weeks.
This might just be the start of something bigger
Technically, when a stock price falls, the company’s market cap takes a hit, and the revenue from its shares starts to shrink. This ripple effect can quickly drain the business’s overall revenue stream, creating a real financial strain.
To turn the tide, Michael Saylor has a few bold options. He could try and manipulate Bitcoin’s price to give MSTR a boost, or he could lean on external sources, like taking on more debt.
And, he’s already making moves. In his recent SEC filing, Saylor revealed plans to raise a whopping $10 billion by issuing additional shares. So, what’s next? That recent post from Saylor could very well be a glimpse into his next big play.
But, here’s where it gets even more interesting. Zooming out, the U.S stock market is on track for back-to-back losses, while the U.S dollar is continuing to surge.
The Bloomberg Dollar Spot Index has gained by 7.4% in 2024, on pace for its best annual performance in 9 years. In fact, the index has jumped 6.9% in just the last 3 months, hitting its highest level since November 2022.
Source : Bloomberg
Why does this matter? The stock market is heading into choppy waters, with the U.S economy facing heightened volatility in 2025 – and MSTR is not immune.
Read Bitcoin’s [BTC] Price Prediction 2025-26
Even worse, MicroStrategy’s dwindling profitability could make it much harder for the company to continue its Bitcoin buying spree.
For Michael Saylor, often hailed as the “savior of Bitcoin,” 2025 may just be the year to put that title to the ultimate test.