MicroStrategy’s Continued Bitcoin Expansion and US Reserve Developments
Michael Saylor’s company, MicroStrategy, now rebranded as Strategy, is poised to continue its streak of Bitcoin purchases, potentially marking the fourth consecutive week of acquisitions. Following transactions made on April 14, 21, and 28, Saylor hinted at more acquisitions with his remark, “Too much blue, not enough orange”—indicating the contrast between their Bitcoin holdings (orange) and the average purchase price (blue) in their portfolio tracker.
On April 30, Strategy released its Q1 2025 financial results, revealing a landmark stock raise of US$21 billion (approximately AU$32.4 billion). This capital infusion not only enabled the firm to acquire an additional 301,000 BTC but also propelled a remarkable 50% increase in share price. Currently, Strategy’s holdings total 553,555 Bitcoin, representing 2.6% of the global supply, significantly overshadowing other publicly listed companies, with the exception of BlackRock’s IBIT ETF, which holds 607,685 BTC (2.89%).
Strategy’s Bullish Outlook for 2025
CFO Andrew Kang announced an impressive 13.7% yield on Bitcoin, with the company already achieving over half of its targeted US$5.8 billion (around AU$8.9 billion) gains for 2025. The firm has acquired a total of 61,497 Bitcoin this year. To put this into perspective, while Strategy leads public companies in Bitcoin ownership, accounting for 2.6% of the total supply, Marathon Digital, the second-largest public company holding Bitcoin, possesses only 0.2% with 47,531 BTC.
The growth of Bitcoin exchange-traded funds (ETFs) in the US remains noteworthy, with these instruments collectively holding 1.16 million BTC, or 5.52% of the total supply. In particular, BlackRock’s IBIT ETF has been stable, managing to retain growth without any net outflows since April 9. In early May, the fund added US$1 billion (AU$1.5 billion) to its assets.
Mixed Results for US Bitcoin Reserve Initiatives
While Strategy shows positive momentum, the broader initiative for US strategic Bitcoin reserves is experiencing mixed outcomes. Recently, Arizona Governor Katie Hobbs vetoed a proposal aimed at establishing a state-first Bitcoin reserve. However, there is progress on a national level with a plan proposed by Donald Trump to create a national stockpile of Bitcoin. The US Treasury is expected to release further details on these initiatives, raising questions about their potential impact on Bitcoin prices.
As of this writing, Bitcoin is trading at US$94,082 (approximately AU$145,558), reflecting a marginal decrease of around 2% over the past day.
In summary, Strategy is aggressively expanding its Bitcoin holdings, partaking in a bullish phase bolstered by strong financial performance. This contrasts with uncertain legislative developments surrounding strategic Bitcoin reserves in the US, signifying a landscape of both opportunity and challenge within the cryptocurrency environment.
