Bitcoin News Today: MicroStrategy Outlines $84 Billion Bitcoin Flywheel Strategy Drives $15.7 Billion in Unrealized Gains

MicroStrategy (MSTR) has outlined a $84 billion capital-raising initiative by 2027 under its “Bitcoin Flywheel” strategy, aiming to expand its Bitcoin holdings while preserving shareholder value. The plan, first detailed in July 2025, centers on a “42/42 plan” to double Bitcoin per share without diluting equity. The strategy has driven $15.7 billion in unrealized gains for the company as of July 12, 2025, following purchases of 6,220 bitcoins at an average price of $118,940 between July 14 and 20, 2025 [1]. These acquisitions added $738 million to MicroStrategy’s Bitcoin portfolio, reflecting its commitment to Bitcoin’s long-term value proposition.

The fundraising approach combines equity and debt financing to maintain liquidity while avoiding over-leveraging. This model aligns with broader institutional trends in crypto markets, including corporate treasury allocations and ETF inflows. For instance, spot Ethereum ETFs have attracted $7.7 billion since their launch, highlighting growing institutional acceptance of blockchain assets [2]. MicroStrategy’s strategy has also influenced Bitcoin’s price trajectory, with the asset reaching a seven-month high of $3,850 on July 21, 2025 [3]. Analysts like Merlijn The Trader have compared Bitcoin’s performance to its 2020 rally, suggesting further upside if the flywheel effect persists [4].

The firm’s approach mirrors emerging dynamics in Ethereum markets, where treasury companies and ETF inflows create compounding demand. Staking ETFs and corporate buy-and-burn mechanisms are projected to drive $50 billion to $100 billion in Ethereum inflows over the next 12-18 months [5]. While MicroStrategy remains focused on Bitcoin, its execution of the flywheel model could serve as a blueprint for other firms leveraging crypto assets.

Critically, the plan balances growth with risk management by avoiding equity dilution and relying on debt financing to navigate crypto volatility. As of July 2025, Bitcoin holdings are expected to represent a significant portion of MicroStrategy’s market value, reinforcing its thesis that Bitcoin functions as a corporate “store of value” [6]. The strategy’s success hinges on maintaining this equilibrium, offering a counterpoint to speculative expansion models.

Sources: [1] [Strategy: The $84 Billion Bitcoin Flywheel](https://seekingalpha.com/article/4803538-strategy-84-billion-bitcoin-flywheel?utm_source=cryptocompare.com&utm_medium=referral&feed_item_type=article) [2] [PA Daily | Bitcoin's market capitalization share fell below 60%][url2] [3] [Ethereum Buying Pressure Surges Amid New Treasury Wave and ETF Inflows][url5] [4] [Ethereum Buying Pressure Surges Amid New Treasury Wave and ETF Inflows][url6] [5] [Ethereum Buying Pressure Surges Amid New Treasury Wave and ETF Inflows][url4] [6] [Strategy: The $84 Billion Bitcoin Flywheel](https://seekingalpha.com/article/4803538-strategy-84-billion-bitcoin-flywheel?utm_source=cryptocompare.com&utm_medium=referral&feed_item_type=article)