Significant Bitcoin Holdings: Michael Saylor Argues Owning 3-7% Isn't Excessive
MicroStrategy (MSTR), the business intelligence firm led by Michael Saylor, has been making headlines with its aggressive Bitcoin (BTC) acquisition strategy. The company has been focusing on yield-bearing preferred perpetual stocks, such as Stretch [STRC], Strike [STRK], Stride [STRD], and Strife [STRF], to raise capital for BTC purchases.
Recently, MicroStrategy announced the acquisition of 21,021 bitcoins between July 28 and August 3, 2025, for $2.46 billion. This marks the third-largest acquisition by dollar amount to date. Stretch [STRC] was the most favorable perpetual preferred stock, with a $2.5 billion raise finalized to purchase the BTC.
The company's Bitcoin holdings now stand at approximately 628,791, accounting for about 3% of the overall BTC supply. These holdings have generated a 25% Bitcoin yield year-to-date in 2025 and a total Bitcoin gain of $13.2 billion. This strong performance substantially boosted the company's profits, with operating income reported at $14.0 billion and net income at $10.0 billion for Q2 2025.
However, the ongoing sale of stocks to raise capital has led to share dilution amid a drop in MicroStrategy's modified net asset value (mNAV), an indicator that tracks the market value of the firm relative to its BTC holdings. The mNAV is currently at 1.62x, down from the record level of 3.89x hit last November. To prevent further dilution, MicroStrategy said it will only sell MSTR shares when the mNAV is above 2.5x.
Matthew Sigel, an analyst at VanEck, hailed MicroStrategy's treasury management as 'best in class'. Saylor referred to Stretch [STRC] as a 'treasury BTC', more like a money market fund. He also presented MSTR as 'amplified BTC' for those seeking a 2x BTC exposure.
Despite the ongoing Bitcoin buying spree, MSTR's share price was down 8.7% during the intra-day trading session on the 1st of August, closing at $366.63. However, a note to clients by Benchmark analysts placed a buy rating for MSTR with a price target of $705, stating that MSTR is not just buying bitcoin anymore, but instead engineering a corporate treasury machine designed to generate Bitcoin-denominated returns.
References:
- MicroStrategy Invests an Additional $2.46 Billion in Bitcoin
- MicroStrategy's Bitcoin Holdings Reach 628,791 BTC
- MicroStrategy's Bitcoin Holdings Are Now Worth $46 Billion
- MicroStrategy's Bitcoin Gain Hits $13.2 Billion on a YTD Basis
- MicroStrategy's aggressive Bitcoin acquisition strategy, led by Michael Saylor, has resulted in a significant push towards crypto investments in the company's business.
- In raising capital for Bitcoin purchases, MicroStrategy has focused on preferred perpetual stocks like Stretch [STRC], which raised $2.5 billion to acquire BTC.
- The company's Bitcoin investments have shown a remarkable performance in finance, generating a 25% Bitcoin yield year-to-date in 2025 and a total Bitcoin gain of $13.2 billion.
