MicroStrategy's Saylor Teases Bitcoin Acquisition That May Exceed $1.25 Billion

Strategy Inc. (formerly known as MicroStrategy) indicates it is on the verge of undertaking a Bitcoin acquisition that could surpass the significant $1.25 billion purchase finalized just last week.

Key Takeaways

MicroStrategy plans a Bitcoin acquisition that may exceed $1.25 billion, surpassing its recent purchase.
The firm's total Bitcoin holdings could exceed 700,000, solidifying its dominance in corporate Bitcoin ownership.
Amidst significant stock price decline and reduced mNAV premiums, the company is employing aggressive funding tactics to sustain its acquisition pace.
Wall Street remains cautious, with a downgrade in price target, citing dilution and declining Bitcoin yield.
Market analysts believe MicroStrategy has developed a competitive edge that traditional banks cannot easily replicate.

On January 18, Michael Saylor shared an image on the social media platform X, labeled "Bigger Orange." Market analysts interpreted this as a clue pointing to plans that would exceed the acquisition of 13,627 Bitcoin the company recently made.

Strategy Signals Major Bitcoin Purchase Amidst Decreasing Stock Premium

This preceding purchase has already secured the company’s position as the most prominent corporate holder of Bitcoin. However, a subsequent acquisition that surpasses that amount would elevate Strategy's total holdings beyond 700,000 Bitcoin, marking a substantial milestone.

Bigger Orange Tweet by Michael Saylor

Achieving this goal would place the firm’s treasury in an elite category, only second to BlackRock’s IBIT exchange-traded fund and the estimated 1.2 million BTC holdings attributed to Satoshi Nakamoto, the pseudonymous creator of Bitcoin.

Despite this ambitious plan, the move comes at a challenging time for the enterprise software firm. Last year, Strategy's stock fell by over 50%, and its critical market-to-net-asset-value (mNAV) premium has dropped to about 1.0x. This decline in premium threatens the arbitrage strategy Saylor has historically used to finance acquisitions.

As Capital flows more towards spot Bitcoin ETFs—offering simpler exposure without the complexities or premiums that come with holding Strategy shares—the company is losing the financial leverage it previously enjoyed.

To maintain its acquisition pace in this challenging environment, Strategy has shifted to more aggressive funding strategies. In the past year alone, the company raised $25 billion through the sale of common stock and new types of preferred shares, such as STRC.

Strategy Bitcoin Fundraise in 2025

On the other hand, Wall Street has responded to this dilution cautiously. TD Cowen has recently lowered its price target for the stock from $500 to $440 while maintaining a Buy rating. The firm pointed to a decrease in "Bitcoin Yield" for fiscal 2026, a unique metric that assesses Bitcoin exposure per share. Analysts have observed that the company's reliance on issuing more equity to fund its acquisitions is actively diluting this yield for its shareholders.

Despite the wariness, some market observers maintain that Strategy has built a significant competitive advantage that traditional finance is struggling to replicate.

"They have figured out how to amass Bitcoin on a large scale, package it, and provide exposure in ways that conventional banks simply can't compete with," Bitcoin analyst Shagun Makin stated.

Makin noted that the growing regulatory and market resistance the firm faces is likely a response to the effectiveness of its model rather than its weaknesses. "Banks can't mirror the model without jeopardizing their own balance sheets. Therefore, the only real options are to slow it down, discredit it, or impose regulations around it," he added.