In a major development in the cryptocurrency space, Strategy, previously MicroStrategy, has bought an extra 13,390 Bitcoin for about $1.34 billion. The purchase, made between May 5 and May 11, 2025, at an average of $99,856 per Bitcoin, brings the total holdings of the company to 568,840 BTC, worth more than $59 billion at prevailing market prices.
Strategic Expansion and Financial Implications
In order to finance the acquisition, Strategy sold 3,222,875 shares of its Class A common stock for about $1.31 billion and another 273,987 shares of Series STRK preferred stock for about $25.1 million. This aggressive buyback strategy has pushed the company’s average purchase price to $69,287 per Bitcoin, including fees and other related expenses.
Significantly, Strategy has purchased 303,230 BTC over the last six months alone, representing almost half of its overall Bitcoin holdings. This makes the company a major force in the cryptocurrency space, with over 2.7% of Bitcoin’s overall supply of 21 million coins.
Criticism from Financial Analysts
While the seemingly successful Bitcoin investment by Strategy has won praise, the strategy has been criticized by financial analysts, especially economist Peter Schiff. Schiff has expressed concerns regarding the firm’s practice of buying Bitcoin at high levels, stating that such actions could prove disastrous if the market takes a turn for the worse. He warned that the firm’s average cost per Bitcoin could rise as high as $70,000 soon, and any subsequent fall could lead to big losses, given the leverage used to make these purchases
Schiff’s concerns are also highlighted by Strategy’s recent performance in terms of finances. The firm recorded a $4.2 billion net loss during the first quarter of 2025, largely due to $6 billion in unrealized losses of Bitcoin under new fair value accounting rules
Although Strategy’s bold investment in Bitcoin shows a great deal of confidence in the cryptocurrency’s long-term value, it also puts the company at high market risk. The debate among financial experts underscores the difficulties and uncertainties of big-ticket investments in cryptocurrencies.
Also read: Coinbase Launches 24/7 Bitcoin and Ethereum Futures Trading: A Milestone in U.S. Crypto Derivatives
