MicroStrategy’s Saylor Hints at Bitcoin Acquisition Surpassing $1.25 Billion

Core Insights - Strategy Inc. is preparing for a significant Bitcoin acquisition that may exceed its recent $1.25 billion purchase, aiming to surpass its current holdings of 13,627 Bitcoin [1][2] - A new purchase could elevate Strategy's total Bitcoin holdings above 700,000, positioning it just behind BlackRock's IBIT ETF and Satoshi Nakamoto's estimated 1.2 million BTC [2] Group 1: Company Performance - Strategy's stock fell over 50% last year, and its market-to-net-asset-value (mNAV) premium has dropped to approximately 1.0x, impacting its acquisition funding model [3] - The firm has raised $25 billion in the past year through common stock sales and new preferred shares to maintain its Bitcoin accumulation strategy [4] Group 2: Market Dynamics - Institutional capital is increasingly directed towards spot Bitcoin ETFs, which offer simpler exposure compared to Strategy's shares, reducing the firm's previous leverage [4] - Wall Street has reacted cautiously to the dilution from equity issuance, with TD Cowen lowering its price target for Strategy's stock from $500 to $440 while maintaining a Buy rating [5] Group 3: Competitive Positioning - Despite skepticism, some analysts believe Strategy has created a structural advantage in Bitcoin accumulation and product offerings that traditional finance cannot easily replicate [6]