MicroStrategy Acquires 1,070 BTC; Saylor Expresses Interest in Providing Bitcoin Advice to Trump’s Administration

MicroStrategy announced the purchase of 1,070 Bitcoin for $101 million in a filing with the US Securities and Exchange Commission (SEC) on Jan. 6. This brings the company’s total Bitcoin holdings to 447,470 BTC as of Dec. 31, 2024, marking the ninth consecutive week of aggressive purchases. The digital assets were originally bought for $27.97 billion but are now valued at about $44.3 billion based on current market prices.

Adopts FASB rules

MicroStrategy has also adopted 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 more volatility to the company’s financial results. 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, offset by $4 billion in deferred tax liabilities and a $1.2 billion reduction in deferred tax assets.

Bitcoin strategy risks

In the SEC filing, MicroStrategy highlighted various risks associated with its Bitcoin-centric strategy. Concentrating most assets in Bitcoin increases exposure to price volatility and potential regulatory challenges. The company’s heavy reliance on debt financing for its Bitcoin purchases could create liquidity risks, especially in the event of a significant drop in Bitcoin prices. MicroStrategy also faces challenges related to custodial issues, insurance coverage, and the untested nature of its Bitcoin-focused strategy in different economic conditions.

Crypto advisory role

Michael Saylor, the CEO of MicroStrategy, has expressed interest in a crypto advisory role in the incoming Trump administration. He is willing to provide insights on digital asset policies to foster growth and development. Saylor is not the only crypto stakeholder open to working with the upcoming administration, which has made pro-crypto appointments in recent weeks.

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