- MicroStrategy has aggressively accumulated over $8 billion worth of Bitcoin, making it the largest corporate holder of the cryptocurrency. The company just bought more BTC in November and December 2022.
- MicroStrategy kickstarted its Bitcoin buying spree in August 2020 and has continued accumulating. The company’s CEO sees Bitcoin as “digital gold” and a smart way to get returns.
- MicroStrategy’s stock price has surged 320% since first buying Bitcoin in 2020. However, an ETF could make its investment thesis less compelling. Outside of crypto miners, few major public companies hold Bitcoin.
Software company MicroStrategy has been aggressively accumulating Bitcoin over the past couple of years. The company now holds over $8 billion worth of cryptocurrency, making it the largest corporate holder.
Recent Bitcoin Purchases
MicroStrategy just bought even more Bitcoin in December 2023. According to a filing with the SEC, the company purchased 14,620 BTC between November 30 and December 26 for approximately $616 million. This comes right after MicroStrategy spent $593.3 million on 16,130 BTC in November.
In total, the company has accumulated 189,150 BTC at an average price of $31,168 per coin. With Bitcoin currently trading around $42,900, MicroStrategy’s holdings are now worth over $8 billion.
Kickstarting the Bitcoin Buying Spree
MicroStrategy’s massive Bitcoin accumulation was kickstarted in August 2020 when the company made an initial $250 million investment into the cryptocurrency.
The company’s CEO, Michael Saylor, is a huge proponent of Bitcoin and thinks of it as “digital gold.” He believes buying and holding BTC is a smart way for companies to fight inflation and get better returns for shareholders.
Despite Bitcoin’s volatility, Saylor takes a long-term view and sees BTC as an asset that will continue appreciating over a 10-year timeframe.
Impact on MicroStrategy’s Stock
Since first investing in Bitcoin back in 2020, MicroStrategy’s stock price has surged over 320%.
Saylor has pitched buying MicroStrategy stock as a safe way for more conservative investors to gain exposure to Bitcoin. However, some speculate that a Bitcoin ETF approval could make this investment thesis less compelling.
Comparisons to Other Companies
Outside of crypto mining companies, there are not many major public companies holding Bitcoin on their balance sheet. A notable exception is Tesla, which bought $1.5 billion worth of BTC in early 2021. Tesla currently holds around 9,720 BTC worth over $400 million.
While MicroStrategy and Tesla have been pioneers in corporate Bitcoin adoption, more companies may follow suit if crypto continues its march towards mainstream acceptance. However, regulatory uncertainty remains a key risk and barrier for many publicly traded companies.
