MicroStrategy Strategy. How Bitcoin on the Balance Sheet Became the New Standard?
A major cryptocurrency company has been described as a strong growth driver in 2025.
A major cryptocurrency company has been described as a strong growth driver in 2025.
In the coming year, more and more companies may start using Bitcoin as a corporate reserve.
The cryptocurrency market expects the actions of US President-elect Donald Trump's administration to have a positive impact on the entire blockchain industry. Furthermore, part of the community expects election promises regarding the inclusion of Bitcoin in national reserves to be fulfilled. Experts believe that the emergence of a state reserve of Bitcoin in 2025 is unlikely, but in the coming year they expect the trend of adding the major cryptocurrency to individual companies' reserves to strengthen.
Trump's idea of adding Bitcoin to the US national reserve, at least next year, is considered unlikely or even 'crazy', according to experts including the management company Bitwise, the chairman of the Federal Reserve Jerome Powell, and Lawrence Summers, who served as US Treasury Secretary from 1999-2001.
Bitwise's IT director Jeff Park estimated the probability of such a move at less than 10%. Powell, as well as Summers, did not support this idea at all. Even those who are generally positive about the future administration point out the obstacles to the adoption of such radical changes in state reserves by legislative and regulatory bodies.
Bitcoin’s Path to $1 million: Park’s Vision and the Federal Reserve’s Potential Role
Park believes that the successful adoption of Bitcoin in the United States could push the price of the leading cryptocurrency to $1 million per coin and beyond: "The idea of creating a federal strategic reserve of Bitcoin in 2025 is an event with a probability of less than 10%. This is the only reason why Bitcoin could reach $1 million or more in 2025."
However, even if Trump's plan does not materialise, demand for Bitcoin from mainstream companies is expected in 2025. The reason for this trend could be the success of MicroStrategy and other companies whose stocks rose in price after adopting a strategy of creating a reserve in Bitcoin. This view was expressed by Jake Ostrowskis, a representative of Wintermute, one of the largest market makers in the cryptocurrency market, to The Block.
The main idea behind buying Bitcoin to replenish corporate balance sheets is that it can improve the company's balance sheet by increasing the share price. This strategy was initiated by MicroStrategy (MSTR) under the leadership of the company's president, Michael Saylor.
As Bitcoin has been accumulated, MicroStrategy's shares have risen more than 2,000% since September 2020, reaching an all-time high of $543 in late November. The previous price peak had been $333 in January 2000. According to data from TradingView, MSTR was trading at around $341 on 27 December.
"I think this will be a pretty strong driver next year," the expert wrote.
MicroStrategy has issued and plans to issue such bonds in the future. Its experience has also been adopted by the largest US mining company, MARA. For example, in November, MARA issued bonds totalling $700 million with a maturity date set for 2030 - part of the funds raised were used to buy bitcoin. However, this had no impact on MARA's share price: in 2024, the company's share price fell by about 18%.
In 2024, a similar strategy to that of MicroStrategy started to be adopted outside the US. Since November, the Japanese investment company Metaplanet has issued the same bonds to buy bitcoin worth at least $11.3 million. The company's share price has increased more than 12 times to $21.9 since April 2024, when the organisation first bought bitcoin on its balance sheet, according to the BitcoinTreasuries service.
A major cryptocurrency company has been described as a strong growth driver in 2025.
In the coming year, more and more companies may start using Bitcoin as a corporate reserve.
The cryptocurrency market expects the actions of US President-elect Donald Trump's administration to have a positive impact on the entire blockchain industry. Furthermore, part of the community expects election promises regarding the inclusion of Bitcoin in national reserves to be fulfilled. Experts believe that the emergence of a state reserve of Bitcoin in 2025 is unlikely, but in the coming year they expect the trend of adding the major cryptocurrency to individual companies' reserves to strengthen.
Trump's idea of adding Bitcoin to the US national reserve, at least next year, is considered unlikely or even 'crazy', according to experts including the management company Bitwise, the chairman of the Federal Reserve Jerome Powell, and Lawrence Summers, who served as US Treasury Secretary from 1999-2001.
Bitwise's IT director Jeff Park estimated the probability of such a move at less than 10%. Powell, as well as Summers, did not support this idea at all. Even those who are generally positive about the future administration point out the obstacles to the adoption of such radical changes in state reserves by legislative and regulatory bodies.
Bitcoin’s Path to $1 million: Park’s Vision and the Federal Reserve’s Potential Role
Park believes that the successful adoption of Bitcoin in the United States could push the price of the leading cryptocurrency to $1 million per coin and beyond: "The idea of creating a federal strategic reserve of Bitcoin in 2025 is an event with a probability of less than 10%. This is the only reason why Bitcoin could reach $1 million or more in 2025."
However, even if Trump's plan does not materialise, demand for Bitcoin from mainstream companies is expected in 2025. The reason for this trend could be the success of MicroStrategy and other companies whose stocks rose in price after adopting a strategy of creating a reserve in Bitcoin. This view was expressed by Jake Ostrowskis, a representative of Wintermute, one of the largest market makers in the cryptocurrency market, to The Block.
The main idea behind buying Bitcoin to replenish corporate balance sheets is that it can improve the company's balance sheet by increasing the share price. This strategy was initiated by MicroStrategy (MSTR) under the leadership of the company's president, Michael Saylor.
As Bitcoin has been accumulated, MicroStrategy's shares have risen more than 2,000% since September 2020, reaching an all-time high of $543 in late November. The previous price peak had been $333 in January 2000. According to data from TradingView, MSTR was trading at around $341 on 27 December.
MicroStrategy has issued and plans to issue such bonds in the future. Its experience has also been adopted by the largest US mining company, MARA. For example, in November, MARA issued bonds totalling $700 million with a maturity date set for 2030 - part of the funds raised were used to buy bitcoin. However, this had no impact on MARA's share price: in 2024, the company's share price fell by about 18%.
In 2024, a similar strategy to that of MicroStrategy started to be adopted outside the US. Since November, the Japanese investment company Metaplanet has issued the same bonds to buy bitcoin worth at least $11.3 million. The company's share price has increased more than 12 times to $21.9 since April 2024, when the organisation first bought bitcoin on its balance sheet, according to the BitcoinTreasuries service.
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