Bitcoin (BTC) Climbs Again on Monday as MicroStrategy Continues Its Buying Spree

Investors have been pouring back into higher-risk assets like cryptocurrencies and growth stocks to start trading in 2025 and that continued today.

Bitcoin (BTC 3.98%) continued its climb on Monday as investors piled back into cryptocurrencies and higher-risk assets to start trading in 2025. But one company is making headlines again with another massive purchase of Bitcoin.

Here's what happened and why it matters.

Bitcoin's big buyer

MicronTechnology (NASDAQ:MU) stock rose on Monday after the company announced another 1,070 Bitcoin acquired over the past week and said it will be raising another $2 billion to buy even more.

Investors have been pouring back into higher-risk assets like cryptocurrencies and growth stocks to start trading in 2025 and that continued today. As of 4 p.m. ET, over the past 24 hours, Bitcoin is up 4%, Ethereum (ETH 1.48%) has climbed a more modest 1.1%, and Dogecoin (DOGE 1.43%) is up 1.4%.

Bitcoin's big buyer

MicroStrategy has been implementing what it refers to as a Bitcoin yield strategy, which involves issuing stock and debt to buy Bitcoin. If the value of MicroStrategy's stock is in excess of the value of Bitcoin held on the balance sheet the company can issue stock to buy Bitcoin, increasing the amount of Bitcoin held per share. This is what it calls "yield."

That's why MicroStrategy has been such a big buyer of Bitcoin in recent weeks. The stock's price is over double the value of Bitcoin per share, which means the company can increase the "yield" rapidly. In 2024, the company had a 74.3% Bitcoin yield, according to management.

What's not clear is how long MicroStrategy's stock will maintain a premium to its underlying Bitcoin assets or what the downside risk is if MicroStrategy stops buying. With such a big buyer in the market, investors know there's always a buyer in MicroStrategy, but that momentum may reverse if the stock falls.