MicroStrategy Adds 130 Bitcoin to Its 650,000 BTC Treasury in $11.7 Million Purchase
Introduction
In a move that reinforces its unwavering corporate strategy, MicroStrategy Incorporated, led by Executive Chairman Michael Saylor, has announced its latest Bitcoin acquisition. The business intelligence firm purchased an additional 130 Bitcoin (BTC) for approximately $11.7 million, bringing its colossal treasury to a new milestone of 650,000 BTC. This purchase, executed at an average price of about $89,960 per BTC, occurred against a backdrop of significant market volatility, including a flash crash that saw Bitcoin's price briefly touch $86,000. Simultaneously, the company disclosed a strategic financial maneuver: establishing a $1.44 billion USD reserve funded by equity offerings to secure its dividend payments and debt obligations. This dual-action approach of bolstering both its Bitcoin holdings and its fcurrency reserves marks a pivotal moment in MicroStrategy's evolution as a publicly-traded proxy for Bitcoin exposure.
MicroStrategy’s Latest Purchase: Context and Numbers
On December 1, 2025, Michael Saylor publicly confirmed the company's latest Bitcoin purchase. The acquisition of 130 BTC for $11.7 million is consistent with MicroStrategy's established policy of using excess cash and proceeds from capital market activities to accumulate Bitcoin. With this addition, the company's total holdings have officially reached 650,000 Bitcoin.
The financial specifics of this strategy are becoming increasingly monumental. According to the announcement, MicroStrategy's cumulative investment in Bitcoin now stands at roughly $48.38 billion, translating to an average purchase price of $74,436 per BTC. It is noteworthy that the latest purchase price of ~$89,960 is significantly higher than this lifetime average, reflecting both the appreciation of Bitcoin over time and the company's continued commitment to buying regardless of short-term price fluctuations. This purchase followed a market event where Bitcoin dropped to $86,000, triggering over $600 million in liquidations across the crypto market.
Building a Fortress Balance Sheet: The $1.44 Billion USD Reserve
Perhaps more significant than the incremental Bitcoin purchase was MicroStrategy's concurrent disclosure regarding its fiat currency management. In a filing with the U.S. Securities and Exchange Commission (SEC), the company revealed it has created a $1.44 billion USD reserve. This reserve was funded using proceeds from its at-the-market (ATM) equity offering program.
The stated purpose of this reserve is twofold: to fund preferred stock dividend payments and to meet the company's debt commitments. MicroStrategy outlined a clear policy for this reserve, stating it plans to maintain a balance sufficient to cover at least 12 months of these obligations, with a long-term goal of extending that coverage to 24 months. This move directly addresses persistent concerns from critics and investors about the potential need for the company to liquidate Bitcoin holdings to service its debts or pay dividends.
Michael Saylor framed this development as a strategic evolution. He stated, “Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution. We believe it will better position us to navigate short-term market volatility while delivering on our vision of being the world’s leading issuer of Digital Credit.” This formal separation of funds is designed to insulate the core Bitcoin treasury from operational liabilities.
Market Reaction and Critical Perspectives
The market's immediate reaction to these announcements was mixed. Despite the fresh purchase signaling confidence, MicroStrategy's stock (MSTR) was down 4.6% in pre-market trading hours on December 1. The share price slipped back under the $170 level, aligning with a broader market drawdown that affected both traditional equities and digital assets.
The creation of the USD reserve attracted immediate criticism from prominent Bitcoin skeptics. Economist and gold advocate Peter Schiff launched a sharp critique on social media platform X, posting: “Today is the beginning of the end of $MSTR. Saylor was forced to sell stock not to buy Bitcoin, but to buy U.S. dollars merely to fund MSTR's interest and dividend obligations. The stock is broken. The business model is a fraud, and @Saylor is the biggest con man on Wall Street.” This perspective highlights the ongoing debate about the sustainability of MicroStrategy’s capital structure, which leverages equity and debt markets to fund Bitcoin acquisitions.
Historical Context: From First Purchase to 650,000 BTC
To fully appreciate the scale of MicroStrategy’s latest move, it is essential to view it within the historical arc of the company’s Bitcoin journey. MicroStrategy initiated its corporate Bitcoin strategy in August 2020, announcing an initial purchase of 21,454 BTC for $250 million. At the time, this was a groundbreaking and highly controversial decision for a NASDAQ-listed company.
Since that first foray, MicroStrategy has consistently added to its holdings through various market cycles, utilizing cash flows, convertible debt offerings, and ATM equity sales. Each major purchase has been publicly documented by Michael Saylor, often via social media. The progression from zero to 650,000 BTC represents not just an accumulation of assets but the execution of a singular corporate thesis: that Bitcoin is superior to cash as a primary treasury reserve asset. The company’s average purchase price of $74,436 serves as a key benchmark against the current market price, illustrating the substantial unrealized gain on its position despite periodic market corrections.
Risk Management and Saylor’s Bullish Stance
A critical component of MicroStrategy’s strategy involves publicly addressing risk scenarios. In the lead-up to this latest purchase, Michael Saylor had already notified stakeholders that the company was prepared to handle a hypothetical Bitcoin price crash down to $25,000. This statement was likely intended to reassure investors about the resilience of the company’s balance sheet against extreme volatility.
This preparedness is now structurally supported by the newly established $1.44 billion USD reserve. By pre-funding dividend and debt obligations for 12-24 months, MicroStrategy aims to eliminate any near-to-medium-term operational pressure to sell Bitcoin. This allows the company to maintain its “hold” strategy through prolonged bear markets or sharp corrections without jeopardizing its corporate obligations or facing forced liquidation—a scenario that has concerned some analysts since the company began taking on debt to buy Bitcoin.
Saylor’s commentary remains unequivocally bullish on Bitcoin’s long-term prospects. The consistent purchasing activity, even at prices significantly above the company’s average cost basis, signals a conviction that current prices still represent value in a multi-year timeframe.
Broader Market Conditions at Time of Purchase
MicroStrategy’s purchase did not occur in a vacuum; it coincided with notable turbulence in global financial markets. On December 1, the crypto market experienced a flash crash where BTC dropped to $86,000. This volatility triggered over $600 million in liquidations across leveraged cryptocurrency positions.
Furthermore, traditional finance markets showed signs of stress that may have contributed to cross-asset volatility. Notably, there was a surge in two-year Japanese government bond yields to over 1%, marking their highest level since the 2008 financial crisis. Such moves in major sovereign debt markets can influence global liquidity conditions and risk appetite, often impacting speculative assets like cryptocurrencies. MicroStrategy’s decision to execute a purchase amid this uncertainty underscores its commitment to dollar-cost averaging and its focus on long-term accumulation rather than short-term timing.
Strategic Conclusion: A Blueprint for Corporate Bitcoin Adoption
MicroStrategy’s dual announcements—the purchase of 130 BTC and the creation of a $1.44 billion USD reserve—represent a maturation of its corporate Bitcoin strategy. The company is no longer just an aggressive accumulator; it is now building formal financial infrastructure to protect and sustain that accumulation strategy indefinitely.
For crypto readers and market observers, these developments offer several key insights:
- Institutional Conviction: MicroStrategy continues to act on its thesis with operational consistency, using market dips as accumulation opportunities.
- Advanced Treasury Management: The separation of funds into distinct BTC and USD reserves provides a potential blueprint for other corporations considering Bitcoin for their balance sheets, demonstrating how to manage operational liabilities without touching the core treasury asset.
- Market Proxy Dynamics: The reaction of MSTR stock, which fell despite the Bitcoin purchase, highlights that the stock trades on complex factors including equity market sentiment, leverage concerns, and its premium/discount to net asset value (NAV), not solely on Bitcoin’s spot price.
What to Watch Next: Investors should monitor MicroStrategy’s future ATM equity offering activities relative to its USD reserve balance and any further debt management initiatives. Additionally, observing whether other public companies adopt a similar dual-reserve model will be crucial in assessing if MicroStrategy’s approach becomes a standard for corporate Bitcoin holders. Finally, tracking the gap between MSTR’s stock performance and the underlying value of its Bitcoin holdings will remain essential for understanding market sentiment toward this unique investment vehicle.
Disclaimer: This article is based on publicly available information and filings for informational purposes only. It should not be interpreted as financial or investment advice.