Bitcoin News Today: MicroStrategy Avoids Bitcoin M&A as Rivals Fuel Treasury Consolidation

Michael Saylor, executive chairman of MicroStrategy, has reiterated that his company has no current plans to acquire other Bitcoin treasury firms, emphasizing the uncertainties and complexities inherent in such mergers and acquisitions (M&A). During MicroStrategy's third-quarter earnings call, Saylor stated, "There's just a lot of uncertainty, and these things tend to stretch out six to nine months or a year. An idea that looks good when you start might not still be a good idea six months later" in a Markets.com report. This stance contrasts with recent moves by competitors like Strive, which became the first Bitcoin treasury company to announce a merger, acquiring Semler Scientific in an all-stock deal to consolidate its holdings.

MicroStrategy's strategy remains focused on three pillars: selling digital credit, improving its balance sheet, and accumulating Bitcoin. The company, now the largest corporate holder of Bitcoin with 640,808 BTC valued at approximately $74 billion, has consistently prioritized Bitcoin as a core treasury asset. Saylor defended this approach as "transparent, predictable, and clear," noting that its business model allows analysts to easily assess whether Bitcoin purchases are accretive or dilutive, as the Markets.com report observed. However, the company's heavy reliance on Bitcoin has drawn scrutiny. S&P Global Ratings recently assigned MicroStrategy a "B-" junk credit rating, citing concerns over liquidity risks, concentrated exposure to Bitcoin, and minimal diversification. The rating agency highlighted that a prolonged decline in Bitcoin's price could jeopardize MicroStrategy's ability to meet its $640 million annual preferred stock dividend obligations and $8 billion in USD-denominated convertible debt maturing through 2031.

While MicroStrategy avoids M&A activity, other firms in the Bitcoin treasury space are aggressively expanding their holdings. ZOOZ Strategy, a dual-listed company on Nasdaq and the Tel Aviv Stock Exchange, recently added 94 bitcoins to its treasury, bringing its total holdings to 1,036 BTC valued at ~$115 million, according to Seeking Alpha. Similarly, Metaplanet, the fourth-largest public Bitcoin holder globally, announced a ¥75 billion share repurchase program to strengthen its Bitcoin strategy, which includes a long-term goal of acquiring 210,000 BTC by 2027, in a TradingView report. These moves reflect a broader trend of companies leveraging capital allocation policies to position Bitcoin as a strategic asset, even amid regulatory and market uncertainties.

Saylor, however, remains bullish on Bitcoin's long-term potential. At the Money 20/20 fintech conference, he predicted Bitcoin could reach $150,000 by year-end 2025, citing reduced volatility, maturing market infrastructure, and regulatory progress as key drivers in a Coinotag report. He also projected a trajectory of 30% annual growth, envisioning Bitcoin hitting $1 million in four to eight years and $20 million per coin within two decades. Despite these optimistic forecasts, S&P's junk rating underscores the risks of Bitcoin's price volatility and MicroStrategy's limited operational revenue beyond its cryptocurrency holdings. The company reported $37 million in negative operating cash flow during the first half of 2025, with most of its liquidity tied up in BTC.

The divergence in strategies between MicroStrategy and its peers highlights the evolving dynamics of the Bitcoin treasury sector. While some firms pursue consolidation and aggressive Bitcoin accumulation, Saylor's approach prioritizes operational transparency and disciplined capital management. As the sector matures, the balance between growth ambitions and financial prudence will likely remain a critical focal point for investors and regulators alike.