MicroStrategy disclosed the acquisition of 1,070 Bitcoin for $101 million in a Jan. 6 filing with the US Securities and Exchange Commission (SEC).
This marks the firm’s ninth consecutive week of aggressive purchases, bringing its total Bitcoin holdings to 447,470 BTC as of Dec. 31, 2024.
The digital assets were purchased for an aggregate price of $27.97 billion but are now valued at approximately $44.3 billion based on current market prices.
Meanwhile, the Michael Saylor-led company also announced adopting the updated Financial Accounting Standards Board (FASB) rules for crypto reporting.
The new standard requires gains and losses from valuation changes to be recorded in net income, introducing greater volatility to the company’s financial results.
Considering this, the company estimates a net increase of around $12.8 billion in its 2025 beginning retained earnings, reflecting a $17.9 billion valuation gain in digital assets.
This is offset by $4 billion in deferred tax liabilities and a $1.2 billion reduction in deferred tax assets.
In the SEC filing, MicroStrategy highlighted the many risks associated with its Bitcoin-centric strategy.
In standard disclosure practice, the firm acknowledged that concentrating most of its assets in Bitcoin increases exposure to price volatility and hostile regulatory developments that could impact the top crypto.
The company also noted that its Bitcoin strategy relies heavily on debt financing. As of Dec. 31, 2024, the company’s debt stood at $7.274 billion, with annual interest expenses of $35.1 million.
However, the Saylor-led firm expects to incur more debt to support its Bitcoin purchases, which could create potential liquidity risks. It noted that a significant drop in Bitcoin prices could impact the company’s ability to secure financing, leading to defaults and further financial strain.
It warned:
“A significant decline in the market value of our bitcoin holdings or a negative shift may create liquidity and credit risks, as such a decline or such shifts may adversely impact our ability to secure sufficient equity or debt financing to service our debt and cash dividend obligations.”
Moreover, the company admitted that Bitcoin’s role as a liquidity source during market turbulence remains unreliable. Unlike traditional financial assets, Bitcoin lacks the legal protections of regulated securities, exposing MicroStrategy to greater risks in volatile markets.
Custodial issues can lead to further complications. The company noted that current insolvency laws do not provide clear guidance for digital assets held in custody accounts, which could limit access to Bitcoin holdings in case of custodian insolvency.
The company’s insurance coverage for its Bitcoin is also insufficient to cover its total holdings, leaving it vulnerable to losses from cyberattacks, key mismanagement, or custodian-related problems.
MicroStrategy admitted that its Bitcoin-focused strategy is relatively untested in varying economic conditions.
It added:
“[So], if bitcoin prices were to decrease or our bitcoin strategy otherwise proves unsuccessful, our financial condition, results of operations, and the market price of our class A common stock would be materially adversely impacted.”
Meanwhile, Saylor has expressed openness to a crypto advisory role in the incoming Donald Trump administration.
In a recent Bloomberg interview, the Bitcoin bull emphasized his willingness to contribute to developing constructive digital asset policies that would foster growth and development.
According to him:
“I’m always willing to provide thoughts on constructive digital assets policy in confidence or publicly and if I’m asked to serve on some sort of Digital Assets Advisory Council I probably would do so.”
Notably, Saylor is not the only crypto stakeholder willing to work with the impending Trump administration, which has made several pro-crypto appointments in recent weeks.
The post MicroStrategy buys 1,070 BTC as Saylor declares interest in Bitcoin advisory for Trump appeared first on CryptoSlate.
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12.10.25 01:12
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14.10.25 08:46
robertalfred175
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14.10.25 08:46
robertalfred175
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15.10.25 18:07
crypto
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15.10.25 21:52
harristhomas7376
"In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1
15.10.25 21:52
harristhomas7376
"In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1