MicroStrategy, the American business intelligence firm that has evolved into a major player in the cryptocurrency sphere, is back in the spotlight. Its latest purchase of over 6,500 Bitcoins has once again pushed its total holdings beyond staggering levels. However, despite being the largest corporate holder of Bitcoin in the world, MicroStrategy’s impact on the cryptocurrency’s price remains surprisingly minimal. Let’s delve into the reasons why, and what this means for both investors and the broader crypto market.

MicroStrategy Buys More Bitcoin—Again

On 22 April 2025, MicroStrategy announced via a Form 8-K filing with the U.S. Securities and Exchange Commission (SEC) that it had acquired an additional 6,556 Bitcoins. The purchase was made between 14 April and 20 April for approximately $555.8 million in cash—equating to about $84,785 per token.

With this acquisition, the company’s total Bitcoin stash has climbed to 538,200 Bitcoins. Based on current market prices, this translates to roughly $47 billion in digital assets on its balance sheet.

Unsurprisingly, shares of MicroStrategy (ticker symbol: MSTR) climbed 1.4% following the last updated news, closing at $321.55. Meanwhile, Bitcoin itself rose 4.1% in the past 24 hours, reaching a value of $88,079, according to data from CoinDesk.

Why Doesn’t MicroStrategy’s Buying Spree Move the Market?

Despite the eye-watering scale of these purchases, analysts at TD Cowen have concluded that MicroStrategy’s Bitcoin acquisitions have little to no significant effect on the price of the cryptocurrency. This revelation may surprise some, considering the frequency and size of the company’s Bitcoin purchases.

TD Cowen’s analysis, which reviewed six months of weekly trading volume and price movements, found that MicroStrategy’s purchases only accounted for a median of 3.3% of weekly Bitcoin trading volumes. In other words, despite buying millions worth of Bitcoin at regular intervals, the company’s actions are dwarfed by the sheer size and liquidity of the global Bitcoin market.

The analysts also calculated a correlation coefficient of just 0.25 between MicroStrategy’s weekly purchase volumes and Bitcoin’s end-of-week price. A coefficient closer to +1 or -1 would suggest a strong relationship, either positive or negative, between the two variables. But with a figure so close to zero, the data indicates that MicroStrategy’s buying activity is largely irrelevant to Bitcoin’s short-term price action.

A Leveraged Bet on Bitcoin—But Not a Market Maker

Founded in 1989 as an enterprise software company, MicroStrategy has undergone a major transformation since 2020. Under the leadership of its executive chairman Michael Saylor, the company made the bold decision to adopt Bitcoin as its primary treasury reserve asset in August 2020.

Since then, the firm has issued debt, launched equity offerings, and leveraged its existing cash reserves to accumulate Bitcoin. Its Bitcoin yield—measured as the change in holdings relative to total assumed outstanding shares—stood at 12.1% between 1 January and 20 April 2025.

While many now view MicroStrategy as a “proxy” for Bitcoin, it’s crucial to distinguish the company from institutional investors who trade in and out of crypto markets for short-term gains. MicroStrategy, on the other hand, is playing the long game. Its objective isn’t to manipulate the market, but to establish a long-term hedge against inflation and currency devaluation.

Sentiment Still Rules Bitcoin’s Price

Bitcoin, as a decentralised digital asset, is particularly vulnerable to market sentiment, regulatory developments, and macroeconomic uncertainty. While some investors view it as a store of value akin to “digital gold,” others see it as a speculative asset prone to wild price swings.

One recent example of sentiment-driven price movement is the executive order signed by former President Donald Trump in March 2025, which called for the creation of a U.S. Bitcoin reserve and digital asset stockpile. Initially met with optimism, the price of Bitcoin fell shortly afterwards when it became clear the government wasn’t planning to purchase the cryptocurrency itself.

Despite Trump’s symbolic gesture, Bitcoin is still down 5.8% in 2025 and 19% below its all-time high of $109,000. Concerns over tariffs, inflation, and a possible global recession continue to suppress investor appetite.

MicroStrategy vs. Bitcoin ETFs: Which is the Better Bet?

Despite its heavy exposure to Bitcoin, MicroStrategy’s stock has actually outperformed several other Bitcoin-linked investment vehicles in 2025. The firm’s share price has gained approximately 10% year-to-date, compared to a 9.6% decline in the iShares Bitcoin Trust ETF over the same period.

This divergence can be explained, in part, by the premium investors are willing to pay for MicroStrategy stock as a high-beta play on Bitcoin. Unlike ETFs, which are designed to closely mirror the underlying asset’s price, MicroStrategy offers investors exposure to Bitcoin with the added volatility—and potential upside—of a publicly traded software company.

So, What’s Next for MicroStrategy and Bitcoin?

For now, MicroStrategy seems committed to its strategy of accumulating Bitcoin as a long-term store of value. The firm’s approach reflects Michael Saylor’s belief that Bitcoin will eventually replace gold as the world’s preferred hedge against inflation and fiat currency risk.

However, as the TD Cowen report makes clear, investors shouldn’t expect the company’s purchases to drive dramatic price increases. The Bitcoin market is simply too large and too liquid for any one player—even the biggest corporate holder—to move the needle significantly.

In the months ahead, attention will likely turn to macroeconomic events, regulatory decisions, and geopolitical developments that influence investor confidence and risk appetite. Meanwhile, MicroStrategy will continue to operate as a Bitcoin-heavy tech stock, offering a unique combination of enterprise software fundamentals and crypto exposure.