Main Points：
- Strategy acquired 13,390 BTC for $1.34 billion between May 5 and May 11, boosting its holdings to 568,840 BTC at an average price of $99,856 per coin.
- The purchase represented a 2.4 % increase in total BTC holdings and coincided with Bitcoin’s rally above $100,000 on May 8.
- After hitting a year-to-date “Bitcoin Yield” of 15.5 %, Strategy raised its 2025 yield target from 15 % to 25 %.
- Bitcoin skeptics like Peter Schiff warn that debt-financed acquisitions at near all-time-high prices could expose Strategy to significant losses if prices retreat.
- The broader market backdrop includes the one-year anniversary of U.S. spot Bitcoin ETF approvals, a renewed U.S.-China trade deal fueling risk appetite, and on-chain metrics signaling strong investor confidence.
Massive Accumulation Amid a Bullish Turn
Between May 5 and May 11, 2025, Strategy (formerly known as MicroStrategy) disclosed in a U.S. Securities and Exchange Commission filing that it had purchased an additional 13,390 BTC for $1.34 billion. This influx of new capital raised the company’s total Bitcoin holdings by 2.4 %, bringing the aggregate to 568,840 BTC acquired at a cumulative cost basis of $39.41 billion. The average purchase price for this tranche was $99,856 per BTC, a level that nearly matched the coin’s recent highs and underscored Strategy’s willingness to double down as prices rallied.
The timing of these buys proved prescient: Bitcoin pierced the $100,000 mark on May 8—its first breach of that psychological threshold in three months—before retreating slightly to trade in the lower $100k range. The convergence of Strategy’s purchases with Bitcoin’s breakout suggests a deliberate move to capitalize on renewed bullish momentum, even as broader markets digest shifting macroeconomic signals.
Meeting and Exceeding Yield Targets
Strategy measures its Bitcoin accumulation efficiency using an internal metric known as “Bitcoin Yield,” defined as the ratio of its BTC holdings to its potentially dilutive share count. Prior to this latest buying spree, the company had set a 15 % yield target for 2025. According to Michael Saylor’s May 12 post on X (formerly Twitter), the new acquisitions have propelled the yield to 15.5 %, enabling Strategy to declare that it had met its original goal well ahead of schedule. In response, management ambitiously raised the target to 25 %, signaling a commitment to more aggressive accumulation if market conditions remain favorable.
Such a yield-driven framework allows Strategy to balance capital raises against its stock structure, offering shareholders transparency on how dilution correlates with Bitcoin growth. Last year, the firm achieved an unprecedented 74 % yield, leveraging equity and debt to amass Bitcoin when prices hovered far below today’s levels. By contrast, sustaining a 25 % yield at near all-time-high prices will require sizeable future purchases and potentially more dilutive financing events.
Critics Weigh In on Debt-Financed Purchases
Not everyone views Strategy’s aggressive approach with enthusiasm. Peter Schiff, a prominent Bitcoin skeptic, retorted to Saylor’s announcement that “the next acquisition will push the average cost above $70,000,” warning that any dip below that level would render paper losses on Strategy’s balance sheet into “realized losses”. Schiff also highlighted the risks of leveraged acquisitions, noting that margin calls or credit facility covenants could force the firm to sell at inopportune times.
Historically, Schiff’s predictions about Bitcoin prices have proven inaccurate—he has been critiqued for repeatedly forecasting steep declines that failed to materialize. Still, his commentary underscores a broader debate: whether a corporate treasury strategy entirely focused on Bitcoin makes sense when prices approach all-time highs. Some institutional players have distanced themselves from Saylor’s model; for instance, Coinbase reportedly explored a similar strategy but ultimately refrained from adopting it, illustrating the divergence of risk appetites among major crypto firms.
Market Ecosystem: ETFs, Trade Deals, and On-Chain Signals
One-Year Anniversary of U.S. Spot Bitcoin ETFs
January 2024 saw the landmark approval of 11 U.S. spot Bitcoin ETFs, a watershed moment that funnelled $65 billion into Bitcoin products and helped propel prices from $43,000 to above $100,000. As the one-year anniversary of those approvals approached, trading volumes in these ETFs remained robust, and issuers like BlackRock’s iShares Bitcoin Trust (IBIT.O) continued to dominate inflows. The success of these ETFs has broadened the institutional investor base for Bitcoin, easing access for pension funds and asset managers traditionally wary of direct crypto custody.
U.S.-China Trade Truce Boosts Risk Appetite
Concurrently, geopolitical developments played a catalytic role. In early May, the U.S. and China agreed to a 90-day tariff suspension, slashing duties on a broad range of goods and briefly igniting risk-on sentiment. While equities soared—Nasdaq and S&P 500 futures jumped over 3 %—Bitcoin initially climbed to $105,500 before retracing to the $101,000–$104,000 corridor. This price action reflects Bitcoin’s evolving status as a barometer of global risk appetite rather than merely a speculative asset.
On-Chain Metrics Signal Strong Confidence
Beyond headlines, on-chain analytics have reinforced the bullish thesis. Realized capitalization, which values each coin at its last transfer price, recently hit $890 billion, an all-time high that indicates strong conviction among long-term holders. Meanwhile, wallets associated with institutions and long-term investors have continued accumulating, even as small holders pare back marginal positions. These dynamics suggest that, despite short-term volatility, the groundwork is laid for a possible retest of Bitcoin’s January 2025 all-time high of $109,588.
Conclusion
Strategy’s latest acquisition of 13,390 BTC at an average price near $100,000 underscores Michael Saylor’s unwavering conviction in Bitcoin’s long-term value proposition. By accelerating its Bitcoin Yield and raising its 2025 target to 25 %, the firm has doubled down on a strategy that has delivered outsized returns in prior cycles—but also carries heightened risks as prices hover at historical peaks. Critics like Peter Schiff remind investors of the perils of debt-financed buying at the top, while broader market forces—ranging from U.S. spot ETF inflows to easing U.S.-China tensions and record on-chain metrics—continue to shape Bitcoin’s trajectory. As we enter the second half of 2025, the interplay between corporate treasury strategies and macro-economic catalysts will determine whether Bitcoin can sustain its rally or face mean reversion. For investors seeking new crypto assets, revenue streams, and practical blockchain applications, Strategy’s bold move offers both a roadmap of aggressive accumulation and a cautionary tale about timing and risk management.
