MicroStrategy’s Bitcoin Mega Strategy

In this issue of Coin Metrics’ State of the Network, we analyze MicroStrategy’s performance, its Bitcoin holdings, and its role as a leveraged proxy within the crypto equities landscape, exploring its acquisition strategy and the risks and rewards of its approach.

Key takeaways:

• MicroStrategy operates as a Bitcoin treasury company and a leveraged proxy to Bitcoin, amplifying BTC’s price movements both on the upside and downside.
• The company now holds 386,700 BTC (valued at ~$36B), representing 1.9% of Bitcoin’s current supply—making them the largest corporate holder of BTC globally.
• MicroStrategy funds its Bitcoin acquisitions through convertible bonds, capitalizing on low borrowing costs and elevated equity premiums during bull markets to expand its BTC holdings.

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