Thomas Daniels
Under the leadership of Michael Saylor, MicroStrategy has expanded its Bitcoin holdings as the cryptocurrency’s value surged from approximately $41,000 at the start of February to beyond $50,000 by the month’s end.
The firm added another 3,000 Bitcoin (BTC) to its portfolio, investing roughly $155 million at an average acquisition cost of $51,813 per BTC in this latest purchase. Under Saylor’s guidance, the company’s total Bitcoin assets now stand at 193,000 units, positioning it as a major holder of the cryptocurrency.
Originally acquiring BTC at an average rate of $31,544, MicroStrategy has invested about $6 billion in its cryptocurrency assets, which are now valued at nearly $10 billion at current market rates. This positions the company with over $4 billion in profit from its Bitcoin investments, making it one of the largest corporate owners of BTC globally.
Since 2020, in response to inflation and the economic uncertainties brought on by the COVID-19 pandemic, MicroStrategy has pursued Bitcoin acquisitions. Saylor advocated for Bitcoin as a strategic hedge against the depreciation of the U.S. dollar. The company has financed its Bitcoin acquisitions through a mix of cash reserves, debt issuance, and equity sales.
Saylor’s Strategy on Bitcoin
Saylor champions Bitcoin as the preeminent cryptocurrency, citing its design which ensures a favorable supply-demand balance for investors.
He argues that Bitcoin’s demand far exceeds its supply, a situation made permanent by the finite limit of 21 million BTC that will ever be available, coupled with the halving events every four years that reduce mining rewards and ensure its scarcity. This system was devised by the pseudonymous creator of Bitcoin, Satoshi Nakamoto.
Saylor also points to the approval of spot BTC Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) as a supportive mechanism for Bitcoin’s model. These ETFs have enabled significant capital inflow into Bitcoin, giving Wall Street investors access to BTC exposure through an exchange-traded fund structure.
Since their launch on January 11, spot BTC ETFs have accumulated over $15 billion in assets under management (AUM), supported by more than 250,000 BTC. Saylor has made it clear that his company has no intention of liquidating its cryptocurrency assets, with plans to continue increasing its Bitcoin holdings.
