The Profitable Bitcoin Journey of MicroStrategy
Business intelligence company MicroStrategy (MSTR) has achieved impressive profits of nearly $2 billion on its Bitcoin (BTC) holdings since it embarked on its investment journey in the digital asset over three years ago. MicroStrategy’s founder and owner, Michael Saylor, has been transparent in documenting the company’s BTC purchases since August 2020.
Significant Bitcoin Holdings
In his latest update on X, Saylor revealed that MicroStrategy currently holds 174,530 BTC, acquired for approximately $5.28 billion at an average price of $30,252 per bitcoin. With Bitcoin’s current price at $41,600, the company has witnessed an overall increase in investment value of 37%, bringing its total worth to $7.26 billion. This translates to a remarkable $1.98 billion in unrealized profits.
Strategic BTC Purchases
Saylortracker.com reports that Saylor has announced a total of 29 separate BTC purchases since August 2020. The company made its initial investment by acquiring 21,454 BTC for an estimated price of $11,652 each. A month later, an additional 16,796 BTC were purchased for $10,496 each. The gains from these purchases have outweighed the losses from other less favorable acquisitions, such as the acquisition of 7002 BTC for $414 million in November 2021, which is still at a 29% loss.
Despite the volatility of Bitcoin’s price, MicroStrategy has not sold any of its BTC holdings since the beginning of its investment journey. The company only made a relatively small sale of BTC in late December for tax purposes, which was promptly repurchased. Saylor has consistently expressed his preference for “HODLing” Bitcoin rather than engaging in trading or timing the cryptocurrency market.
MicroStrategy’s Q3 financials reveal that one of the company’s primary corporate strategies is to “acquire and hold bitcoin, which we view as a dependable store of value supported by a robust, public, open-source architecture untethered to sovereign monetary policy.” The company appears to be amassing new BTC through stock issuance, with its most recent issuance raising $600 million to purchase over 16,000 coins. Some have likened MicroStrategy’s approach to that of an unofficial Bitcoin spot ETF, although an official version is expected to be approved in the United States next month.
Furthermore, it was disclosed in 2020 that Saylor personally owns 17,732 BTC acquired for $9,882 each. Assuming he still holds on to these coins, his personal investment has seen a remarkable increase of 320%. Combining his personal and corporate holdings, Saylor now controls nearly 1% of all BTC in circulation.
In conclusion, MicroStrategy’s strategic investment in Bitcoin has proven to be highly profitable, gaining nearly $2 billion in unrealized profits. With its steadfast approach of “HODLing” Bitcoin and its ongoing acquisition of the cryptocurrency, the company continues to solidify its position in the crypto market.
