Strategy builds $71 billion bitcoin stake after Michael Saylor reverses stance

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Strategy $71B bitcoin stake

Highlights

Strategy amasses 848,250 bitcoin worth about $71 billion after spending $64.0 billion, following Michael Saylor's reversal and ongoing accumulation since August 2020.
Strategy's bitcoin exposure causes significant stock volatility, with bitcoin down 26% from its $126,000 October peak and the stock falling 85% by late June before a new high.
Between late May and early August, Strategy sells 6,900 bitcoin—including some below purchase price—to pay preferred stock dividends, revealing liquidity and balance-sheet strain risks.

Treasury shift drives bitcoin accumulation

As reported by Weiss Ratings, Saylor first criticized bitcoin in December 2013, when he wrote that its days were numbered and compared its prospects to online gambling. At the time, he was leading MicroStrategy, now renamed Strategy, and his skepticism reflected earlier experience with market turbulence after the software company restated financial results in 2000 and its stock plunged.

The company’s position changes in 2020, when it holds about $500 million in treasury cash as the pandemic period brings heavy monetary and fiscal stimulus in the U.S. Saylor later describes that cash as a melting ice cube, arguing that inflation risk is eroding its value.

On Aug. 11, 2020, MicroStrategy buys 21,454 bitcoin for $250 million, or about $11,650 per coin. That first purchase marks a late entry rather than an early one, but it establishes the strategy that the company continues to follow.

Strategy still buys bitcoin regularly, and on Oct. 13 it says in an SEC filing that it purchases another 250 bitcoin. That lifts its holdings to 848,250 bitcoin, the largest amount it has held, after spending a total of $64.0 billion on the position.

Volatility shapes investor options and market risk

At about $83,600 per coin, Strategy’s bitcoin holdings are worth around $71 billion, while the broader bitcoin market carries an overall value near $1.7 trillion. The scale of the company’s position makes it one of the most prominent corporate proxies for bitcoin exposure in public markets.

The path is not smooth. Bitcoin is down about 26% from a year ago after reaching a peak near $126,000 last October, and Strategy’s stock experiences even sharper swings, falling about 85% by late June from its November 2024 high before recovering to a new high.

Between late May and early August, Strategy also sells about 6,900 bitcoin, partly to pay dividends on its preferred stock. Some of those sales occur at around $60,000 per coin, below the company’s average purchase price, highlighting the liquidity and balance-sheet pressures that can emerge even in a long-term accumulation strategy.

For investors seeking bitcoin exposure, the article outlines three main routes: spot bitcoin ETFs, direct ownership of bitcoin through an exchange such as Coinbase, and Strategy stock as a more volatile equity-based alternative. The comparison suggests that while Saylor commits his company balance sheet to bitcoin, individual investors can choose more measured forms of exposure.

In our earlier article on rising U.S. Treasury yields and widening fiscal strain, we explained how long-term borrowing costs above 5% are feeding through to mortgages, federal interest expenses, and tighter financing conditions across the economy. We also noted that with deficits near $2 trillion and political gridlock limiting the odds of deficit reduction, markets face a prolonged period of elevated funding costs that can pressure both public budgets and private balance sheets.

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