MicroStrategy Acquires 10,107 Bitcoin for $1.1 Billion in Bold Move

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MicroStrategy has made a significant addition to its Bitcoin holdings, purchasing 10,107 BTC for approximately $1.1 billion** at an average price of **$105,596 per bitcoin. This strategic acquisition brings the company’s total Bitcoin yield to 2.90% year-to-date in 2025, reinforcing its long-standing commitment to digital asset accumulation.

As of January 26, 2025, MicroStrategy’s total Bitcoin holdings have reached 471,107 BTC, acquired for roughly $30.4 billion** at an average cost of **$64,511 per coin. The announcement was confirmed by CEO Michael Saylor via social media, underscoring the firm’s aggressive Bitcoin-centric treasury strategy.

“MicroStrategy has acquired 10,107 BTC for ~$1.1 billion at ~$105,596 per bitcoin and has achieved BTC Yield of 2.90% YTD 2025. As of 1/26/2025, we hodl 471,107 $BTC acquired for ~$30.4 billion at ~$64,511 per bitcoin.”
— Michael Saylor

This latest purchase follows a broader trend in early 2025, during which the company acquired 24,707 BTC in January alone, signaling strong confidence in Bitcoin’s long-term value despite short-term market volatility.

How MicroStrategy Funds Its Bitcoin Strategy

To sustain its aggressive Bitcoin buying spree, MicroStrategy has taken bold financial steps. In early 2025, shareholders approved an increase in the company’s Class A common stock from 330 million to 10.3 billion shares. This move significantly expands the company’s ability to raise capital through equity offerings, directly fueling its Bitcoin acquisition strategy.

👉 Discover how institutional strategies are reshaping Bitcoin’s market dynamics.

With this expanded share structure, MicroStrategy aims to raise up to $42 billion in fresh capital by issuing new shares. This funding mechanism allows the company to continue accumulating Bitcoin without relying heavily on debt or asset liquidation.

Additionally, the company has announced plans to fully redeem $1.05 billion in senior convertible notes due in 2027. This redemption, scheduled for February 2025, reduces interest obligations and strengthens MicroStrategy’s balance sheet. By eliminating this debt, the company lowers its financial risk and increases flexibility to focus on long-term Bitcoin investment.

However, a potential regulatory challenge looms. Under provisions of the 2022 Inflation Reduction Act, MicroStrategy could face federal taxes on unrealized Bitcoin gains—a tax burden that could amount to billions of dollars. With over $19.3 billion in unrealized profits on its current holdings, the company may be forced to sell part of its Bitcoin stash if such a tax is enforced.

While no definitive action has been taken by the IRS, this possibility introduces uncertainty into MicroStrategy’s otherwise bullish trajectory. The company’s upcoming Q4 2024 earnings report, set for release on February 5, 2025, will likely address these financial risks and provide further insight into its future strategy.

Bitcoin and the Broader Crypto Market Outlook

Despite MicroStrategy’s bullish moves, the broader cryptocurrency market has experienced a sharp correction. The total crypto market cap dropped by 5.37%, falling to $3.42 trillion** amid widespread selling pressure. Bitcoin led the downturn, trading around **$99,000—a nearly 5% decline from recent highs.

The sell-off impacted major altcoins across the board:

Market analysts attribute part of the volatility to external tech developments, including growing global attention on China’s AI-powered DeepSeek application, which sparked investor speculation about shifting tech capital flows.

Liquidations surged during the downturn, with $860.55 million wiped out in the past 24 hours**, according to data from CoinGlass. Of that total, nearly **$260 million came from Bitcoin-related positions, highlighting the leverage exposure in the current market cycle.

👉 See how macro trends influence Bitcoin price movements and investor behavior.

Despite the short-term turbulence, many institutional investors view pullbacks as buying opportunities—mirroring MicroStrategy’s own strategy. The firm’s consistent accumulation during both bull and bear phases reinforces Bitcoin’s role as a long-term store of value.

Frequently Asked Questions

How much Bitcoin does MicroStrategy own?
As of January 26, 2025, MicroStrategy holds 471,107 BTC, acquired for approximately $30.4 billion** at an average price of **$64,511 per bitcoin.

How does MicroStrategy afford to buy so much Bitcoin?
The company raises capital primarily through equity financing, including issuing new shares. Shareholders recently approved an increase in available Class A shares to enable up to $42 billion in fundraising, which is used to purchase Bitcoin.

Is MicroStrategy taxed on its Bitcoin gains?
Currently, MicroStrategy is not taxed on unrealized gains. However, under the 2022 Inflation Reduction Act, there is a possibility the U.S. government could impose taxes on paper profits. If enacted, this could force the company to sell some Bitcoin to cover tax liabilities.

Why is MicroStrategy buying so much Bitcoin?
CEO Michael Saylor views Bitcoin as a superior treasury reserve asset—more secure and inflation-resistant than cash or bonds. The company’s strategy is to hedge against currency devaluation and long-term economic uncertainty.

Could MicroStrategy sell Bitcoin in the future?
While the company maintains a “hold” philosophy, potential tax regulations or extreme financial pressures could lead to partial sales. However, there are no current indications of a strategic shift away from accumulation.

How does MicroStrategy’s Bitcoin buying affect the market?
Large-scale purchases by institutions like MicroStrategy increase demand and can drive price appreciation. They also signal confidence in Bitcoin’s long-term viability, encouraging other corporations to consider similar strategies.

👉 Explore institutional Bitcoin adoption trends shaping the future of finance.

Core Keywords

MicroStrategy continues to stand at the forefront of corporate Bitcoin adoption, turning market dips into strategic entry points. While regulatory and macroeconomic risks persist, its unwavering commitment underscores a growing belief in Bitcoin as a foundational asset for the future of finance.