Bitcoin’s leading corporate owner, MicroStrategy, saw its holdings soar as the price of the cryptocurrency approached $53,000. With more than $10 billion in holdings, the company amassed an astonishing profit of over $4 billion. In an investor presentation, the company showed that it had 190k Bitcoin. In 2023 alone, MicroStrategy bought 56,650 BTC at an average price of $33,580 for a total of $1.9 billion, making it the biggest corporate holder of Bitcoin globally by February 5th, 2024.
Strategically, in the last quarter of 2023, MicroStrategy bought 30,555 BTC at $1.2 billion in proceeds from capital market activities. Besides this, the company had purchased 350 BTC in excess cash for $13.4 million. In the 2024 first quarter, the company furthered its accumulation strategy by buying 850 BTC, valued at $37.2 million, yet again with excess cash.
Following this, Michael Saylor, co-founder and CEO of MicroStrategy, recently said that Bitcoin is now the base of the digital transformation of capital and that money is very quickly shifting from assets of the previous analog time towards the newly exposed digital economy. Saylor hammered in on BTC as digital property secured and transported by digital power—hinting at its robustness and promise in the current financial skyline.
MicroStrategy’s Commitment To Bitcoin
In a recent interview on CNBC, Saylor discussed the current interest in Bitcoin ETFs, mentioning substantial investor demand compared to available supply. He gave this as the reason why people anticipated ETF access to BTC for an entire decade. What Saylor stressed about it is that it is an asset class that does not correlate with traditional risk assets, and it does not depend on geopolitical or economic variables.
Saylor announced MicroStrategy’s rebranding into a Bitcoin development company, showing they are committed to adding more BTC and growing the network. It was the success of their bitcoin strategy and also being identified as the world’s largest public company holder of the leading cryptocurrency that made him do this.
Even as MicroStrategy takes a bullish stand on BTC, some of the industry analysts, like Lark Davis, have cautioned against not to miss the scale of Michael Saylor’s bet in BTC, drawing the comparisons of historical bets that include that of Michael Burry, who bet $1 billion against the real estate crash of 2008.
Now, with MicroStrategy’s unrealized profit from BTC having already touched $4 billion, Saylor’s Bitcoin bet is an acknowledgment of the amazing potential of the cryptocurrency and the kind of history it could be capable of scripting in the years ahead.