After Trump took office, Strategy company paused its investment in Bitcoin, attracting market attention.

Against the backdrop of rapidly changing global political and economic patterns, the publicly listed company Strategy (formerly MicroStrategy), known for its large-scale purchases of Bitcoin, recently announced a suspension of new Bitcoin purchases. At the same time, the company set a target of $10 billion in "Bitcoin dollar revenue" for 2025 during its recent earnings call. To achieve this goal, either the price of Bitcoin must double, or Strategy must at least double its holdings at the current price.

As the world's largest enterprise-level Bitcoin holder, Strategy holds 450,000 Bitcoins as of February 7, 2024, with an average cost of around $62,000. This holding ranks among the top five Bitcoin holders globally, accounting for approximately 2.38% of the total Bitcoin supply. This ratio is comparable to the official gold reserves of the United States, highlighting Strategy's leading position and strategic determination in the field of crypto assets.

The recent actions of Strategy have sparked widespread discussion among investors. Analysis indicates that the company's decision to suspend Bitcoin purchases may stem from multiple factors.

First of all, the company recorded a net loss of $3.03 per share in the fourth quarter of 2024, despite doubling its Bitcoin holdings, which far exceeded analysts' expectations. This was mainly due to significant impairment charges on its digital assets. According to the old accounting standards, when the price of Bitcoin falls below the purchase cost, the company is required to reflect this loss in its financial statements.

Secondly, after the implementation of the new Financial Accounting Standards Board (FASB) guidelines, Strategy needs to measure its held Bitcoin at fair value and reflect unrealized gains on its financial statements. While this increases transparency, it may also lead the company to be liable for Corporate Alternative Minimum Tax (CAMT) on these unrealized gains. Faced with the potential for a large tax bill, pausing purchases may be a financial risk management strategy.

In addition, since the company was included in the Nasdaq 100 Index, it needs to comply with stricter information disclosure and corporate governance requirements. The suspension of increasing holdings in Bitcoin may also be related to the company's internal lock-up period policy, especially around the time of financial report releases.

Although Strategy has paused purchases, other institutions in the market have not followed. Several states in the U.S. are pushing to incorporate Bitcoin as a state-level strategic asset. Currently, 16 states have submitted related bills, with two states making faster progress. It is estimated that approximately 28,312 Bitcoins may be used for investment.

It is worth noting that a Kentucky state representative recently proposed a bill suggesting that 10% of state funds be invested in digital assets with a market capitalization exceeding $750 billion. If 16 states reference this ratio, more than $24 billion could flow into the Bitcoin market, equivalent to 1.25% of Bitcoin's current market capitalization, and approximately equal to 3.24% of the U.S. gold reserves.

These developments indicate that, in addition to companies like Strategy, other institutions and governments are also actively considering purchasing Bitcoin. Less than a month after the new government took office, Bitcoin's status in the global financial system is rising at an unprecedented pace, showcasing a future full of uncertainty yet also full of imagination.