MicroStrategy doubles down! Spends $960 million to scoop up Bitcoin, holdings surpass 660,000

MicroStrategy, the largest corporate holder of Bitcoin, has once again executed a “textbook” operation, purchasing 10,624 Bitcoins for $962.7 million between December 1 and 7 at an average price of $90,615 per coin. This is the company’s largest acquisition since July of this year. Following this purchase, MicroStrategy’s total Bitcoin reserves have reached an astonishing 660,624 coins, with a total cost of $4.935 billion and an average cost of $74,696 per coin. Crucially, the company recently established a $1.4 billion cash reserve fund aimed at covering several years’ worth of dividends and interest payments, completely dispelling short-term market concerns over a potential forced Bitcoin sale and providing a solid buffer for its “buy only, never sell” long-term strategy.

Counter-Cyclical Buying: MicroStrategy Executes Its Second-Largest Bitcoin Acquisition of the Year

Against the backdrop of a global crypto market correction and cautious market sentiment, MicroStrategy has once again demonstrated unwavering long-term conviction in Bitcoin with a decisive, large-scale purchase. This $962.7 million acquisition is the company’s second-largest single purchase this year, following its $2.46 billion acquisition of 21,021 Bitcoins in July. The average purchase price of $90,615 per coin was lower than Bitcoin’s market price at the time of the announcement, once again demonstrating disciplined “buy the dip” execution.

This move was not entirely unexpected. Previously, company co-founder Michael Saylor posted a Bitcoin holdings tracking chart on social platform X, captioned “Back to orange dot?”—a cryptic signal widely interpreted by the community as a precursor to accumulation, now confirmed. Despite concerns that MicroStrategy might be forced to sell Bitcoin due to financial pressures, this purchase is a strong rebuttal, sending a clear message: for MicroStrategy, any price correction is a strategic opportunity to accumulate more “digital property,” not a risk.

This accumulation coincided with Bitcoin rebounding from recent lows, reclaiming the $90,000 psychological threshold. MicroStrategy’s purchase resonated with the price rebound, not only generating instant unrealized gains for its holdings but also greatly boosting overall market confidence. As the “anchor” of the Bitcoin market, its counter-cyclical buying provides other institutional investors and long-term holders with a critical psychological reference and behavioral benchmark.

Financing Strategy Revealed: How Equity Sales Power the “Bitcoin Perpetual Engine”

Where did such massive purchasing funds come from? MicroStrategy’s financing strategy is equally sophisticated. According to filings with the U.S. Securities and Exchange Commission, the funds for this Bitcoin purchase were entirely sourced from concurrent equity financing. Specifically, MicroStrategy raised $928 million in net proceeds from the sale of approximately 5.1 million shares of common stock, and another $34.9 million from the sale of perpetual preferred shares. The two financings together raised about $962.9 million, almost perfectly matching the Bitcoin purchase outlay.

This “sell equity → buy Bitcoin” loop has become MicroStrategy’s signature capital operation model. SkyBridge founder Anthony Scaramucci praised Saylor for “first establishing a dollar reserve fund, then selling equity to buy Bitcoin, further strengthening the balance sheet.” The brilliance of this strategy lies in leveraging public market recognition of the company’s Bitcoin strategy (albeit recently somewhat diminished), converting equity capital into scarce Bitcoin assets, and continually reinforcing its unique positioning and narrative as a “publicly traded Bitcoin company.”

Although the price premium of the company’s stock relative to its Bitcoin assets has shrunk from a peak of 2.5x to about 1.1x, leading analysts at Cantor Fitzgerald and Bernstein to lower target prices, MicroStrategy’s financing capacity remains robust. This successful near-$1 billion financing demonstrates that its “Bitcoin growth flywheel” is still effective in capital markets. As long as belief in its long-term strategy persists, this model will continue to fuel its Bitcoin accumulation.

MicroStrategy Latest Bitcoin Acquisition and Holdings Key Data

This Acquisition (December 1-7):

• Purchase amount: $962.7 million
• Number acquired: 10,624 BTC
• Average price per coin: $90,615
• Funding source: Sale of common stock ($928 million) + sale of perpetual preferred stock ($34.9 million)

Cumulative Holdings (as of December 7):

• Total holdings: 660,624 BTC
• Total cost: $4.935 billion
• Average cost: $74,696
• Current value of holdings (at approx. $91,000 per BTC at time of writing): around $6.01 billion
• Year-to-date (YTD) return: 24.7%

Company Financial Buffer:

• Newly established cash reserve fund: $1.4 billion
• Reserve coverage: about 21 months of dividends and interest payments, or at least 3 years with no need to sell BTC

Fortifying the Moat: $1.4 Billion Reserve Fund Eliminates Biggest Market Concern

The greatest recent concern about MicroStrategy has been that it might be forced to sell assets during Bitcoin price slumps to cover high preferred dividend and debt interest payments, potentially triggering a “sell-off spiral.” MicroStrategy management has provided a powerful solution: the company recently announced the establishment of a dedicated $1.4 billion cash reserve fund.

CEO Phong Le further explained that this reserve is sufficient to cover about 21 months of future dividend and interest payments, with plans to continue increasing the reserve over time. This means that for at least the next three years, MicroStrategy faces no pressure to sell Bitcoin to meet cash flow needs. This move has effectively removed the “Sword of Damocles” hanging over the market and its stock price, providing unprecedented safety for the company’s long-term Bitcoin holding strategy.

Previously, Le stated on a podcast that if the company’s “adjusted net asset value” ratio fell below 1x, they might consider selling Bitcoin. Now, with the massive cash reserve in place, this trigger is unlikely to be reached in the foreseeable future. This not only stabilizes investor sentiment but also neutralizes a key bearish argument. By proactively managing its financial structure, MicroStrategy has effectively isolated its operational risk from Bitcoin’s short-term price volatility, allowing it to navigate market cycles more confidently.

Market Impact and Future Outlook: The Benchmark Role of a Bitcoin Whale

MicroStrategy’s latest accumulation announcement had an immediate impact on the market. Its stock rose as much as 2.8% in pre-market trading, reflecting positive investor response. More importantly, as the world’s leading public company Bitcoin holder, every large-scale action by MicroStrategy carries strong signaling and demonstration effects.

From a broader perspective, MicroStrategy is redefining how a public company can use its balance sheet for strategic asset allocation. It has elevated Bitcoin from a speculative fringe asset to a core corporate reserve asset on par with cash and gold. Its strategy of “issuing long-term low-cost debt/equity, swapping for absolutely scarce Bitcoin” is controversial, but has proven to be a viable path that creates tremendous shareholder value. With the establishment of a $1.4 billion cash reserve, the robustness of its model has qualitatively improved.

Looking ahead, MicroStrategy’s continued existence and growing Bitcoin reserves have become a significant structural factor in the Bitcoin ecosystem. It represents a portion of “illiquid supply”—Bitcoins locked on the company’s balance sheet for the long term, not easily sold into the market due to short-term price swings. This ongoing “supply absorption,” set against the backdrop of Bitcoin’s four-year halving cycle and diminishing new supply, will have profound long-term effects. For the entire crypto market, MicroStrategy is no longer just a company—it is a living, ongoing grand experiment in corporate asset strategy and the future of money. Every step it takes deserves the close attention of all market participants.