MicroStrategy Burns Through a Third of Its 3-Year Bitcoin Plan With Latest $1.5B Buy

• MicroStrategy now owns 402,100 BTC worth over $38 billion, just short of its $42 billion goal.
• Some analysis suggests that MicroStrategy could survive a BTC price dip to around $20,000.
• MicroStrategy commands 1.91% of BTC’s market cap.

MicroStrategy’s ultra-aggressive Bitcoin (BTC) strategy is accelerating closer toward its goal of raising $42 billion over the next three years after the firm bags a gigantic 15,400 BTC.

But, the strategy is way ahead of schedule, which could carry significant risks for the firm should the crypto markets take yet another historical tumble.

Too Much, Too soon?

According to its latest  filing with U.S. regulators, MicroStrategy has completed a purchase of 15,400 BTC for $1.5 billion at a price of $95,967 per BTC.

The bold move has raised MicroStrategy’s total holdings to an eye-watering 402,100 BTC or just over $38 billion at the time of writing.

This puts the firm $4 billion short of achieving its “21/”21” plan , which would see the firm raise that figure to $42 billion by 2027.

The 21/21 strategy was announced at the end of October in its  Q3 2024 repor t when at the time, it held 252,220 BTC.

Now that MicroStrategy is set to achieve this goal, likely within the next year, MSTR investor risk appetite is being tested, as a big dip in BTC could spell trouble for MSTR.

But some believe it would have to be an extremely bearish market to really hurt MicroStrategy.

One analyst, Jeff Walton, a risk and capital advisor, posited that MicroStrategy’s financials are in good shape as it has five times more assets than liabilities.

Therefore, a drawdown of around 80% to $18,826 would be a price dip that would make MSTR assets worth more than their liabilities.

MSTR Pullback

MicroStrategy’s stock, MSTR , has been one of the top performing stocks of 2024 thanks to Bitcoin’s enormous year-long price gains, largely attributed to the launch of Bitcoin exchange-traded funds (ETFs), the Bitcoin Halving, and increasing optimism around U.S. crypto regulations thanks to Donald Trump’s 2024 Presidential Election victory.

This has placed MSTR in the running to be listed on the $26 trillion Nasdaq-100 index thanks to the exceptional market capitalization it has achieved this year.

However, as noted by experts, a major pullback in the price of BTC could sink MicroStrategy’s position, potentially its underlying financials, rock MSTR investor confidence, and trigger a sell-off.

And if BTC and MSTR take a tumble, Saylor’s 2024 winning streak may end a little sooner than anticipated.

Regardless, MicroStrategy is currently the largest BTC-owning company on Earth commanding approximately 1.91% of the total market cap of BTC. If MicroStrategy’s financials are in order, the firm could survive even the most bearish conditions.