Today, on October 1, 2025, everyone is talking about MicroStrategy, now called Strategy Inc., but still known as MSTR on the NASDAQ stock market. This company used to make software, but now it’s the biggest Bitcoin owner in the world, holding over 640,000 Bitcoins worth billions of dollars. Its stock price has gone up a lot because of Bitcoin, but there are also big risks that could make it fall. I’ve been writing about crypto for four years, and I love making hard ideas easy to understand. In this article, I’ll explain in very simple words why MSTR’s stock is doing so well and what dangers you need to know about so you can make smart choices.
What Is MicroStrategy? From Software to Bitcoin King
MicroStrategy started in 1989 as a company that makes software to help businesses understand their data. It helps them find trends in numbers, like sales or customer habits. It was good at this for a long time, working with big companies. But in 2020, things changed. The boss, Michael Saylor, decided to use the company’s money to buy Bitcoin instead of keeping it in a bank.
Why did they choose Bitcoin? Michael Saylor calls it “digital gold.” There will only ever be 21 million Bitcoins, and nobody can make more, unlike regular money. When prices for things like food or gas go up, regular money buys less, but Bitcoin often keeps its value. MicroStrategy started buying Bitcoin with its cash and even borrowed money to buy more. This makes MSTR a way to own Bitcoin without buying it directly. If you can’t buy Bitcoin because of rules, like at your job, you can buy MSTR stock instead.
By the end of 2024, MicroStrategy owned about 252,000 Bitcoins. In 2025, they bought a lot more, even when prices went up and down. As of late September 2025, they own 640,031 Bitcoins, worth over $72 billion at today’s price of about $113,000 per Bitcoin. They paid an average of $73,983 per coin, spending $47.35 billion total. That’s about 3% of all the Bitcoin in the world!
In February 2025, they changed their name to “Strategy” to show they care more about Bitcoin than software. But they kept the MSTR ticker on the stock market. This name change tells everyone that Bitcoin is their main plan now.
Why Bitcoin Is Making MSTR’s Stock Go Up
Bitcoin’s price has been like a rollercoaster, but in 2025, it has mostly gone up. It started the year at about $95,000, reached over $122,000 in July, and now is around $113,000. Why is Bitcoin’s price rising?
First, new rules in the United States made it easier to buy Bitcoin. In 2024, the government allowed Bitcoin ETFs, which are like funds that hold Bitcoin for regular people. By mid-2025, these funds manage over $132 billion. Big companies like BlackRock joined, so more people trust Bitcoin.
Second, the world is changing. After the 2024 U.S. election, more people talked about using Bitcoin. Some countries, like El Salvador, already use Bitcoin as real money. Other countries are thinking about it to avoid problems with regular money losing value.
Third, Bitcoin’s price doesn’t jump around as much as it used to. Its ups and downs are 75% less wild now because big investors, like companies and funds, are buying it.
MicroStrategy gets a big boost from Bitcoin’s rise. When Bitcoin’s price goes up by $1,000, MSTR’s stock often jumps two or three times more. This happens because they use “leverage,” which means borrowing money to buy more Bitcoin. In early 2025, they bought 89,000 Bitcoins, taking their total past 500,000. This made their stock price soar.
MSTR’s Stock in 2025: A Big Win
Let’s look at the numbers. At the end of 2024, MSTR stock was about $200 per share. By July 2025, it reached $442, which is over 120% higher in just six months. After some drops, it was $322.21 on September 30, up 18% for the year. Over the past five years, the stock has grown by 2,200%. That’s better than most stocks you can buy.
Experts really like MSTR. All 12 experts watching the stock say it’s a “Strong Buy.” They think it could reach $495, which is 50% more than today’s price. Some even say it could hit $705 by 2026. Why are they so excited? The stock is worth more than the Bitcoin it holds. The company’s total value is $91 billion, but its Bitcoin is worth $72 billion. People trust that MicroStrategy’s plan will keep working.
In mid-2025, Strategy made $14 billion from Bitcoin price increases. They set a goal for 2025 to have 25% more Bitcoin per share and make $15 billion in gains. Being added to the Nasdaq-100 index in 2025 brought more people to buy the stock. Big investors call it “Wall Street’s hottest trade.” Over 70 companies are now copying MicroStrategy’s idea to hold Bitcoin, but MicroStrategy was the first.
Why Their Plan Works So Well
MicroStrategy’s idea is simple but strong. They treat Bitcoin like a savings account that grows fast. Instead of earning just 1% in a bank, Bitcoin can grow 100% in some years. They borrow money at low rates, like 1%, to buy more Bitcoin and wait for it to grow.
Borrowing Money to Win Big
In late 2024, they made a plan called “21/21” to raise $42 billion by 2027. Half of this money comes from selling stock, and half comes from loans, all to buy more Bitcoin. In 2025, they raised $18.3 billion by selling new shares called STRK and STRF, which pay money to people who own them. Their $17.3 billion debt is safe because their Bitcoin is worth so much. If Bitcoin’s price hits $150,000 by the end of 2025, as they hope, they could make $24 billion without selling any Bitcoin.
Helping Everyone
This plan helps people who own MSTR stock. Each share now has more Bitcoin, going from 118 in 2024 to over 106 targeted for 2025. If Bitcoin’s price goes up, your shares are worth more. New rules in 2025 let them count Bitcoin price increases right away, adding $12.7 billion to their books in early 2025. Their plan also shows other companies how to use Bitcoin to protect against rising prices. Big funds, like pension funds, put $632 million into MSTR in early 2025 because they see it as a safe choice.
Dangers You Need to Know
MicroStrategy’s Bitcoin plan is exciting, but it’s not safe. I’ve watched crypto for years and seen prices go up and down fast. Here are the big dangers in simple words.
Danger 1: Bitcoin’s Price Can Fall Fast
Bitcoin’s price changes a lot. Last week, it dropped below $110,000 but then went back up. If it falls 30%, MicroStrategy could lose $14 billion, and the stock could drop even more because of borrowing. In 2022, Bitcoin’s price fell 75%, and MSTR’s stock lost 90% of its value. If something bad happens, like a big hack or a weak economy, this could happen again in 2025.
Danger 2: Borrowing Too Much Money
MicroStrategy owes $8.2 billion, and $1 billion of that must be paid back by 2027. Borrowing is great when Bitcoin’s price goes up, but if it falls, paying back the money is hard. Their debt looks okay, but it all depends on Bitcoin’s price staying high. If prices stay low for a long time, they might have to sell Bitcoin to pay debts, which could make Bitcoin’s price fall even more. Some people call this a “debt trap” that could hurt them in bad times.
Danger 3: Making Shares Less Valuable
To buy more Bitcoin, MicroStrategy sells new shares. Since August 2025, they sold 3.2 million new shares, which is 1.2% of all their shares. From January to July, they made 20 million new shares plus others. This paid for 94% of their new Bitcoin buys, but it makes your share of the company smaller. The stock’s extra value compared to Bitcoin dropped from twice as much in January to 1.44 times now. If they keep selling shares, your gains could get smaller.
Danger 4: Rules and Big Problems
Governments might make new rules, like taxes or bans, that hurt Bitcoin. The U.S. government is watching MicroStrategy closely. Some lawsuits say the company hides risks, though one lawsuit ended in August 2025. More could come. Since they own 3% of all Bitcoin, MicroStrategy is a big deal. If they sell their Bitcoin suddenly, it could shake the whole Bitcoin market.
Danger 5: Software Business Could Struggle
Their software business still makes $463 million a year, but Bitcoin gets all the attention. If other companies, like Tableau, make better software using new technology like AI, MicroStrategy could lose money. Then, they would depend even more on Bitcoin.
Some experts, like Peter Schiff, say gold would have been a safer choice than Bitcoin. Others think MicroStrategy’s stock could drop 50%, like it did between 2021 and 2023.
What Experts Think About the Future
Some experts think MSTR could reach $522 by the end of October, which is 60% more than now. Others warn it could fall to $175 if they keep selling new shares. By 2030, some say it could hit $1,500 if Bitcoin reaches $200,000. Regular investors on sites like Stocktwits aren’t sure, guessing prices from $53 to $671.
Final Thoughts: Big Wins, Big Risks
MicroStrategy’s Bitcoin plan turned a software company into a crypto star. With 640,000 Bitcoins, their stock is up 18% in 2025. Borrowing money and buying more Bitcoin makes every price jump bigger. But there are dangers: Bitcoin’s price could crash, debt could be hard to pay, new shares could shrink your value, and new rules could cause trouble. If you want safe investments, try index funds. But if you believe in Bitcoin, like I do after years of writing about it, MSTR is an exciting choice.
Also Read: Crypto Bubbles: A Data-Backed Playbook to Spot the Next Collapse (2025 Guide)
Disclaimer: This article is only for education and information. It is not financial advice, not a promotion, and not an affiliate article. Please do your own research before making any money decisions. I am not responsible for any loss or profit you make.
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