MicroStrategy Earns $3 Billion as Bitcoin Price Breaks $47k
MicroStrategy's Bitcoin holdings have risen to $8.89 billion, a $3 billion gain from its initial $250 million investment in 2020, despite challenges like price drops and potential bankruptcy.
MicroStrategy Becomes One of the Largest Winners in the Bitcoin and Crypto Bull Market
MicroStrategy Inc., a prominent name in enterprise software and a key player in the cryptocurrency market, has seen a significant surge in the value of its Bitcoin holdings. Recently, Bitcoin's price has surpassed $47,000, a notable increase that has directly impacted MicroStrategy's investment portfolio.
As of 9 Jan, 2024, MicroStrategy holds approximately 189,150 Bitcoins, nearly 1% of the total Bitcoins in circulation. The average cost of these acquisitions stands at $31,168 per Bitcoin, totaling around $5.895 billion. With Bitcoin's price exceeding $47,000, the total market value of MicroStrategy's Bitcoin assets has reached about $8.89 billion, translating into a gain of around $3 billion.
Founded in 1989, MicroStrategy has transitioned from its roots in database and business intelligence software to becoming a key player in the digital asset space. MicroStrategy's journey in the Bitcoin landscape began in the summer of 2020 under the leadership of founder Michael Saylor, with a strategy focused on accumulating Bitcoin. This approach positioned the company as the largest Bitcoin holder among public companies. MicroStrategy made its first foray into the Bitcoin market on August 11, 2020. The company invested a substantial $250 million of its inflation-hedging funds into purchasing 21,454 Bitcoins. This initial investment, made at an average price of $11,882 per Bitcoin, marked a pivotal moment in MicroStrategy's approach to treasury management, reflecting its confidence in Bitcoin as a superior asset class compared to traditional cash holdings.
However, the journey wasn't without its challenges. Following the 2021 bull run, Bitcoin and other crypto assets experienced a significant price drop. In December 2022, amidst the market volatility following the FTX bankruptcy announcement, MicroStrategy sold 704 Bitcoins at an average price of $16,761. This strategic sale, a departure from its initial "buy and hold" strategy, was made for tax purposes and aimed to generate tax benefits by offsetting capital losses against previous gains. There were also rumors about MicroStrategy's potential bankruptcy, partly because a significant portion of the funds used for Bitcoin purchases were sourced through corporate loans.
The latest investment into bitcoin was made between November 30 and December 26, 2023. During this period, MicroStrategy and its subsidiaries purchased approximately 14,620 Bitcoins at an average price of roughly $42,110, amounting to a total investment of about $615.7 million.
List of Bitcoin buying and selling history
August 11, 2020: Purchased 21,454 BTC at an average price of $11,882.
September 14, 2020: Purchased 16,796 BTC at an average price of $10,419.
December 4, 2020: Purchased 2,574 BTC at an average price of $19,425.
December 21, 2020: Purchased 29,646 BTC at an average price of $21,925.
January 22, 2021: Purchased 314 BTC at an average price of $31,808.
February 2, 2021: Purchased 295 BTC at an average price of $33,810.
February 24 - March 3, 2021: Purchased 19,452 BTC at an average price of $52,765.
March 1, 2021: Purchased 328 BTC at an average price of $45,732.
March 5, 2021: Purchased 205 BTC at an average price of $48,888.
March 12, 2021: Purchased 262 BTC at an average price of $57,146.
April 5, 2021: Purchased 253 BTC at an average price of $59,289.
May 13, 2021: Purchased 271 BTC at an average price of $55,387.
May 18, 2021: Purchased 229 BTC at an average price of $43,663.
June 21, 2021: Purchased 13,005 BTC at an average price of $37,617.
September 13, 2021: Purchased 8,957 BTC at an average price of $44,945.
November 28, 2021: Purchased 7,002 BTC at an average price of $59,187.
November 29 - December 8, 2021: Purchased 1,434 BTC at an average price of $57,477.
December 30, 2021: Purchased 1,914 BTC at an average price of $49,229.
January 1 - January 31, 2022: Purchased 660 BTC at an average price of $37,865.
February 15 - April 5, 2022: Purchased 4,167 BTC at an average price of $45,714.
June 28, 2022: Purchased 480 BTC at an average price of $20,817.
September 20, 2022: Purchased 301 BTC at an average price of $19,851.
November 1 - December 21, 2022: Purchased 2,395 BTC at an average price of $17,871.
December 22, 2022: Sold 704 BTC at an average price of $16,761.
December 24, 2022: Purchased 810 BTC at an average price of $16,790.
March 27, 2023: Purchased 6,455 BTC at an average price of $28,016.
April 5, 2023: Purchased 1,045 BTC at an average price of $28,016.
April 29 - June 27, 2023: Purchased 12,333 BTC at an average price of $28,136.
July 1 - July 31, 2023: Purchased 467 BTC at an average price of $30,835.
November 30, 2023: Purchased 16,130 BTC at an average price of about $36,785
Conclusion
MicroStrategy's strategic investment in Bitcoin has led to substantial returns, particularly highlighted by the recent surge in Bitcoin's value. This strategy has not only been beneficial for MicroStrategy but also served as a catalyst for other companies to consider incorporating digital assets into their investment portfolios. Moreover, the broader market is observing developments like the potential approval of a Bitcoin spot ETF with keen interest. Such advancements, if realized, could further enhance the acceptance and integration of Bitcoin and other cryptocurrencies in mainstream financial strategies, indicating a significant shift in the investment landscape.
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