In the realm of cryptocurrency investment, few names resonate as powerfully as Michael Saylor, the co-founder and executive chairman of Strategy (previously known as MicroStrategy).
His company has made headlines yet again with the recent acquisition of 1,955 Bitcoin (BTC) for a staggering $217.4 million, averaging an impressive price of $111,196 per coin.
This bold move not only bolsters Strategy's position as the world's largest corporate Bitcoin holder but also highlights an emerging trend among corporations leaning towards cryptocurrency investment.
Despite facing challenges, such as its exclusion from the S&P 500 index, Strategy's strategic vision showcases Saylor's steadfast belief in Bitcoin's long-term value and potential for growth.
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Key Takeaways
- Michael Saylor's Strategy has solidified its position as the largest corporate Bitcoin holder with a recent acquisition of 1,955 BTC.
- The company is funding its investments through share sales while achieving significant returns for shareholders.
- The growing trend of corporate investment in Bitcoin suggests increased institutional confidence in the cryptocurrency market.
Michael Saylor's Strategic Vision: The Expansion of Bitcoin Holdings
In recent weeks, Michael Saylor, the co-founder and executive chairman of Strategy (previously MicroStrategy), has made headlines with his company’s bold move to bolster its Bitcoin reserves.
In a significant acquisition, Strategy purchased 1,955 Bitcoin (BTC) for approximately $217.4 million, with an average cost of $111,196 per coin.
This strategic investment comes on the heels of Strategy's exclusion from the prestigious S&P 500 index, despite reporting strong quarterly results.
The latest purchase catapults Strategy’s total Bitcoin holdings to an impressive 638,460 BTC, valued at around $7
1.5 billion, thereby solidifying its position as the world's largest corporate holder of Bitcoin.
Market analysts at QCP Capital have noted the remarkable resilience of Bitcoin's price, which has maintained stability above the $110,000 mark — even in light of the company's recent index setback.
Currently trading around $112,000, Bitcoin has shown a
0.9% increase over the last 24 hours, showcasing a robust market despite volatility.
Strategy's acquisition was strategically financed through the sale of 591,606 common shares, raising $200.5 million, coupled with preferred stock valued at $16.9 million between September 2-7.
This funding strategy has translated to a substantial
25.8% yield on Bitcoin investments for shareholders in the year to date.
The drive among corporations to embrace Bitcoin is evident, as illustrated by companies like Japan’s Metaplanet, which are also ramping up their BTC acquisitions.
Additionally, while Strategy’s stock price has seen fluctuations—closing at $335.87 and trading lower in pre-market at around $329.20—its long-term prospects appear to ride the waves of Bitcoin’s increasing adoption and market acceptance.
Saylor’s unwavering commitment to Bitcoin, backed by strategic financial maneuvers, paints a promising picture for both Strategy and the broader corporate landscape's engagement with cryptocurrency.
Market Response and Corporate Trends in Bitcoin Investment
The recent moves by corporations towards Bitcoin investments signal a transformative shift in the financial landscape.
Strategy's acquisition of 1,955 BTC, coupled with its record holdings, not only underscores the company's confidence in Bitcoin as a robust asset but also reflects a growing trend among businesses to diversify their portfolios with cryptocurrency.
The compelling yield rates and relative price stability of Bitcoin bolster its appeal to corporate investors, while the consistent demand from established firms like Strategy and Metaplanet enhances market confidence.
Analysts speculate that as institutional adoption increases, Bitcoin's price could see further appreciation, positioning it as a key asset class in corporate investment strategies.
By Wolfy Wealth - Empowering crypto investors since 2016
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