MicroStrategy Buys $1.34 Billion Worth of Bitcoin Amid Analyst Optimism

MicroStrategy has purchased 13,390 bitcoins for $1.34 billion, increasing its total holdings to 568,840. Analysts forecast a 14.64% upside to $476.92, but GuruFocus estimates suggest a potential downside of 94.14% to $24.40. Despite this, Wall Street remains optimistic on MicroStrategy's prospects, with an average brokerage recommendation of 2.0, indicating an "Outperform" status.

MicroStrategy has made headlines by acquiring an additional 13,390 bitcoins (BTC) for $1.34 billion, increasing its total holdings to 568,840 BTC. This purchase, announced on May 12, 2025, was made at an average price of $99,856 per BTC, according to Lookonchain [1].

The purchase brings MicroStrategy's total Bitcoin holdings to approximately $59.08 billion, with an average acquisition cost of $69,287 per BTC and an unrealized profit of $19.66 billion. This significant accumulation signals ongoing bullish sentiment from major corporate investors and may contribute to sustained upward price pressure in the Bitcoin and broader crypto markets.

Following the announcement, Bitcoin's price surged by 2.8% within 24 hours, pushing BTC/USD from $100,900 to $103,800. Trading volume for BTC spiked by 18% to $32.4 billion across major exchanges. This indicates strong market participation and presents potential breakout opportunities for traders.

MicroStrategy's stock (MSTR) also reacted positively to the news, gaining 4.2% in pre-market trading. The firm's Bitcoin holdings now represent a significant portion of its market cap, with MSTR often moving in tandem with BTC price swings. As of May 12, 2025, BTC rose by 2.8%, and MSTR's stock followed with a 4.2% gain, illustrating a direct impact.

Analysts forecast a 14.64% upside to $476.92 for MSTR, but GuruFocus estimates suggest a potential downside of 94.14% to $24.40. Despite this, Wall Street remains optimistic on MicroStrategy's prospects, with an average brokerage recommendation of 2.0, indicating an "Outperform" status.

MicroStrategy's latest acquisition underscores its commitment to Bitcoin as a treasury asset and highlights the growing intersection between traditional stock markets and cryptocurrency investments. The timing of this acquisition is particularly notable, given recent stock market turbulence, with the S&P 500 dipping by 1.3% on May 11, 2025.

Institutional interest in Bitcoin, spurred by MicroStrategy's consistent purchases, also drives liquidity into crypto-related stocks and ETFs. For instance, the Grayscale Bitcoin Trust (GBTC) saw a 3% volume increase to $180 million on May 12, 2025, as reported by Yahoo Finance.

Traders should remain vigilant for macroeconomic triggers that could amplify volatility across both asset classes. The acquisition also creates actionable trading opportunities across both crypto and stock markets, with Bitcoin's price action post-MicroStrategy's purchase showing bullish momentum.

References:
[1] https://blockchain.news/flashnews/microstrategy-boosts-bitcoin-portfolio-with-1-34b-purchase-13-390-btc-added-at-99-856-average-price
[2] https://www.tipranks.com/news/strategy-stock-mstr-gets-a-price-target-hike-from-mizuho-securities