Strategy Surpasses $128.5 Billion Market Cap as Bitcoin Fuels Corporate Transformation

Strategy (NASDAQ: MSTR), widely recognized for its aggressive Bitcoin acquisition strategy, has reached a record-breaking market capitalization of $128.5 billion, ranking it among the top 84 publicly traded companies in the United States. This marks a dramatic rise from its valuation of under $2 billion just five years ago.

The firm has undergone a profound transformation to become the largest corporate holder of Bitcoin, currently managing a treasury of approximately 601,550 BTC — valued at over $70 billion based on recent market prices. Since 2020, Strategy has tripled its shares outstanding to 281.9 million, driven by a combination of organic growth, a 10-for-1 stock split executed in August 2024, and multiple at-the-market equity issuance programs aimed at funding Bitcoin purchases.

In October 2024, Strategy unveiled an ambitious three-year capital raise plan targeting $42 billion through a mix of equity and fixed-income instruments. This plan is central to its ongoing Bitcoin accumulation strategy. Recent at-the-market programs include a common stock ATM initiated on May 1, 2025, with approximately $17.78 billion still available for issuance.

Additionally, the company launched three preferred stock offerings in July 2025, creating a “Bitcoin credit system” that leverages equity and preferred shares without immediate margin call risks until 2029, effectively betting on Bitcoin’s long-term price appreciation.

The preferred stock details are as follows:

Despite its current trading price being roughly 15% below the November 2024 peak, investor confidence remains strong, attracted by MicroStrategy’s unique role as a liquid, high-beta proxy for direct Bitcoin exposure in the public markets.

Investor Sentiment and Market Analysis

Despite MicroStrategy’s strong Bitcoin-backed positioning and recent market cap milestone, analyst opinions and risk factors remain mixed:

• Bullish Price Targets: TD Cowen raised its price target to $680, projecting Strategy could hold up to 850,000 BTC by 2027. Bitcoin Magazine Pro models foresee targets between $950 and $2,000, with speculative highs reaching $15,000 to $25,000.

• Risk Factors and Caution: TipRanks rates MSTR as Neutral due to concerns over high leverage, negative cash flow (current ratio: 0.66), and an ongoing class action lawsuit filed in May 2025, alleging misleading statements about MicroStrategy’s Bitcoin strategy.

MicroStrategy’s $128.5 billion market capitalization currently exceeds the value of its Bitcoin holdings. This discrepancy raises questions about whether the premium valuation is supported by the company’s core software business or driven primarily by speculative enthusiasm.

Bitcoin Accumulation Intensifies Across Network as Price Consolidates Near All-Time High

Bitcoin is currently trading near $118,000, approximately 5% below its all-time high, amid widespread accumulation activity spanning retail investors to large-scale institutional holders.

On-chain analytics provider Glassnode reports that wallet cohorts — from “shrimps” holding less than 1 BTC to “whales” possessing over 10,000 BTC — are exhibiting Accumulation Trend Scores of 1, indicating consistent network-wide buying pressure.

Smaller wallets, categorized as the “crab” and “fish” cohorts holding under 100 BTC, are particularly active, accumulating roughly 19,300 BTC monthly. This demand outpaces the monthly issuance of new Bitcoin, which currently stands at about 13,400 BTC. Such a unified accumulation pattern has not been observed since November 2024 and May 2025, contributing to a tightening of Bitcoin’s circulating supply.

This broad-based buying enthusiasm underscores growing confidence in Bitcoin as a digital asset, reinforcing its position as a preferred store of value and an increasingly institutionalized investment.