- Topic
957 Popularity
17k Popularity
102k Popularity
232 Popularity
17k Popularity
- Pin
- 📢 Exclusive on Gate Square — #PROVE Creative Contest# is Now Live!
CandyDrop × Succinct (PROVE) — Trade to share 200,000 PROVE 👉 https://www.gate.com/announcements/article/46469
Futures Lucky Draw Challenge: Guaranteed 1 PROVE Airdrop per User 👉 https://www.gate.com/announcements/article/46491
🎁 Endless creativity · Rewards keep coming — Post to share 300 PROVE!
📅 Event PeriodAugust 12, 2025, 04:00 – August 17, 2025, 16:00 UTC
📌 How to Participate
1.Publish original content on Gate Square related to PROVE or the above activities (minimum 100 words; any format: analysis, tutorial, creativ - 💙 Gate Square #Gate Blue Challenge# 💙
Show your limitless creativity with Gate Blue!
📅 Event Period
August 11 – 20, 2025
🎯 How to Participate
1. Post your original creation (image / video / hand-drawn art / digital work, etc.) on Gate Square, incorporating Gate’s brand blue or the Gate logo.
2. Include the hashtag #Gate Blue Challenge# in your post title or content.
3. Add a short blessing or message for Gate in your content (e.g., “Wishing Gate Exchange continued success — may the blue shine forever!”).
4. Submissions must be original and comply with community guidelines. Plagiarism or re - 🎉 The #CandyDrop Futures Challenge# is live — join now to share a 6 BTC prize pool!
📢 Post your futures trading experience on Gate Square with the event hashtag — $25 × 20 rewards are waiting!
🎁 $500 in futures trial vouchers up for grabs — 20 standout posts will win!
📅 Event Period: August 1, 2025, 15:00 – August 15, 2025, 19:00 (UTC+8)
👉 Event Link: https://www.gate.com/candy-drop/detail/BTC-98
Dare to trade. Dare to win.
MicroStrategy Bitcoin Strategy: $27.7 billion to purchase 440,000 coins, disrupting financial innovation
MicroStrategy's Bitcoin Strategy: A Disruptive Financial Innovation
In the history of Wall Street, MicroStrategy's Bitcoin strategic transformation will undoubtedly become a unique new legend.
A Bitcoin Strategy That Has Attracted Global Attention
The COVID-19 pandemic in 2020 triggered a global liquidity crisis, prompting countries to adopt loose monetary policies to stimulate the economy, which led to currency depreciation and increased inflation risks.
Michael Saylor reassessed the value of Bitcoin during the pandemic. He believes that when the money supply is rapidly increasing, people need a hedging asset that is not tied to fiat cash flow. Therefore, he chose a Bitcoin strategy for the company.
Compared to the BTC ETFs or Spot Bitcoin ETPs launched by other companies, MicroStrategy's Bitcoin strategy is more aggressive. It purchases Bitcoin using the company's idle funds, issuing convertible bonds, and increasing share issuance, allowing the company to directly gain from the rise in Bitcoin while also bearing the risk of decline, whereas ETFs/ETPs focus more on price tracking.
The Source of Funding for MicroStrategy and the Bitcoin Purchase Journey
MicroStrategy mainly raises funds to purchase Bitcoin through four main avenues:
The initial three investments used idle funds on the books. In August 2020, $250 million was invested to purchase 21,400 Bitcoins; in September, $175 million was invested to purchase 16,796; in December, $50 million was invested to purchase 2,574.
To purchase more Bitcoin, MicroStrategy has begun issuing convertible bonds for financing. Convertible bonds allow investors to convert the bonds into company stock under specific conditions, usually with a lower interest rate. The interest rates for several rounds of convertible bonds issued by MicroStrategy are mostly between 0% and 0.75%.
MicroStrategy also issued a $489 million senior secured bond maturing in 2028 with a 6.125% interest rate. This type of secured bond has lower risk but only offers fixed interest income. This batch of bonds has been selected for early repayment.
As the strategy begins to show results and stock prices rise, MicroStrategy is adopting more market price stock issuance for financing. This method is lower risk and has no repayment pressure. The company can flexibly choose the timing to sell new shares based on market conditions.
As of December 30, 2024, MicroStrategy has invested approximately $27.7 billion in total, purchasing 444,262 Bitcoins at an average holding price of $62,257 per coin.
Key Questions About MicroStrategy's "Smart Leverage" Bitcoin Purchase
1. Is the leverage risk of MSTR high?
Not too high. As of December 30, 2024, MicroStrategy's total assets are approximately $43.74 billion, liabilities are $7.27385 billion, and the debt-to-equity ratio is only 0.208. This ratio is healthy for a company transitioning from software to finance.
2. Under what circumstances will these convertible bonds become an unbearable burden in the future?
If MicroStrategy does not continue to issue convertible bonds, Bitcoin will long-term fall below $16,364, and the value of the held Bitcoin will be less than the total amount of the convertible bonds. If only ATM financing and idle funds are used to buy coins, as the holdings increase, this "insolvency" price line may be even lower.
Currently, the possibility of MicroStrategy being in a "liabilities exceeding assets" situation is low.
3. Why are investors starting to pay attention to MSTR's per share coin holding?
The amount of coin per share will determine MSTR's net asset per share. As long as MSTR's market value is higher than the total value of the BTC held, diluting the equity to buy BTC can increase the amount of coin per share, which means an increase in net asset per share.
Currently, the market value of MSTR is 1.902 times the value of Bitcoin holdings, with a premium rate of 90.2%. Each share corresponds to approximately 0.0018 BTC holdings.
4. Why has MicroStrategy been more aggressive in buying Bitcoin in the past two months?
This may be due to the high price of MSTR stock. In November and December 2024, MicroStrategy invested $17.69 billion (, accounting for 63.8% ) of the total investment, purchasing 192,042 Bitcoins (, which accounted for 43.2% ) of the total purchases.
MicroStrategy has proposed the "42B Plan", which aims to issue 21B in ATM + 21B in Fixed Income over the next three years to continue increasing its Bitcoin holdings.
5. What upward momentum does Bitcoin have after MicroStrategy?
Apart from the listed companies that have been driven to purchase Bitcoin by MicroStrategy, I can currently only think of more national-level strategic reserves, but I do not have high expectations for this bull market.
The recent surge in Bitcoin is mainly due to the following major buying pressures:
Summary
MicroStrategy's Bitcoin strategy is not only a business experiment in corporate transformation but also a significant innovation in financial history. Through sophisticated capital operations, intelligent leverage, and profound insights into Bitcoin's value, it has not only earned itself a remarkable increase in market capitalization but has also brought Bitcoin more profoundly into the view of traditional finance, breaking down the barriers between crypto assets and mainstream capital markets.
This bold attempt may just be the prelude to the legend of Bitcoin, but it could also be a significant step into a new era of finance.