MicroStrategy Rules Out Bitcoin M&A, Boosts BTC Holdings
In its Q3 earnings call, MicroStrategy reported net income of $2.8 billion, beating expectations and lifting its stock 6% after hours. Chairman Michael Saylor ruled out any Bitcoin M&A, citing lengthy processes and strategic dilution. Instead, the company will strengthen its balance sheet through digital credit sales and continue Bitcoin accumulation. It added 42,706 BTC this quarter, raising its total to 640,808 BTC at an average cost of $74,032 per coin—the largest corporate holding. CEO Phong Le warned of hidden risks in software and Bitcoin treasury M&A. Rival Strive acquired Semler Scientific in an all-stock deal, gaining 11,006 BTC and ranking as the 12th-largest public holder. S&P Global Ratings assigned MicroStrategy a B-grade, noting limited equity recognition for its Bitcoin assets. The firm targets a 30% Bitcoin yield by year-end and sees BTC potentially reaching $150,000, emphasizing that transparent, measurable Bitcoin purchases deliver predictable results.
Bullish
MicroStrategy’s decision to forego Bitcoin M&A in favor of direct BTC accumulation signals strong corporate demand and confidence in Bitcoin’s future price. Adding 42,706 BTC and holding a total of 640,808 BTC reduces available supply and underlines long-term bullish sentiment. The use of digital credit sales to fund purchases and a target of $150,000 for Bitcoin by year-end further support positive short-term momentum. Overall, the news is bullish for Bitcoin, as it highlights institutional conviction and predictable accumulation strategies that can absorb market volatility.