MicroStrategy, a software powerhouse, is making waves yet again in the crypto space. Recent disclosures from the U.S. Securities and Exchange Commission, alongside a proclamation by Michael Saylor, the firm’s chairman, reveal the acquisition of an additional tranche of Bitcoin. Between November 30 and December 26, the Tyson, Virginia-based entity secured 14,620 BTC at an average price of approximately $42,110 per coin, totaling around $616 million.
As a result, MicroStrategy’s Bitcoin holdings now soar to 189,150 BTC, translating to a staggering $8.1 billion at current market valuations. This milestone positions MicroStrategy as the leading corporate custodian of this digital currency.
Founder and chairman Michael Saylor instigated MicroStrategy’s strategic pivot toward Bitcoin on August 11, 2020, initiating a $250 million investment in the cryptocurrency. Saylor, a fervent advocate, has championed Bitcoin as “digital gold,” advocating its superiority over traditional cash reserves.
The company’s sustained accumulation of Bitcoin, obtained at an average price of $31,168 per coin, stands as a testament to Saylor’s steadfast confidence in the cryptocurrency’s long-term potential. Notably, Bitcoin’s current trading price hovers at $42,901, underscoring the value appreciation witnessed since MicroStrategy’s initial foray into the market.
Saylor is resolute in his belief that embracing Bitcoin as a long-term asset is integral to securing superior returns for company stakeholders, countering the erosive effects of inflation. Despite Bitcoin’s periodic market volatility, its overall trajectory has been one of consistent growth since its inception in 2009.
In Saylor’s words, “We’re making a 10-year investment, and when you analyze Bitcoin over that time frame, its volatility diminishes—it’s a trajectory of ascent.” This conviction has yielded substantial gains for MicroStrategy, with its stock, listed under the MSTR ticker on Nasdaq, surging by over 322% since the commencement of Bitcoin investments.
Saylor posits that investing in MicroStrategy’s stock presents a secure avenue for investors to access the burgeoning digital asset market. However, the potential approval and subsequent trading of a spot Bitcoin ETF in the U.S. could potentially dilute the allure of this investment strategy for certain stakeholders.
MicroStrategy’s bold move to embrace Bitcoin stands as a relatively unique approach among public tech companies. While few have ventured into Bitcoin holdings, notable exceptions include electric vehicle titan Tesla, which amassed 9,720 BTC, currently valued at $417 million, in February 2021.
