MicroStrategy, a business intelligence firm, has made significant Bitcoin acquisitions, adding 55,500 BTC for $5.4 billion. This purchase was spurred by optimism after President-elect Donald Trump's victory.
The acquisition was funded through a $3 billion convertible note issuance and sales of common shares, reflecting confidence in MicroStrategy's future stock value.
MicroStrategy, under co-founder Michael Saylor's guidance, shifted from using corporate cash to a more sophisticated funding model, capitalizing on financial arbitrage.
The company's Bitcoin strategy has yielded a 59.3% return this year, equivalent to about 341 BTC per day or a potential $11.2 billion annually if BTC hits $100,000.
Despite these gains, analysts warn about the risks of leverage, highlighting past downturns impacting both Bitcoin prices and MicroStrategy's stock value.
