MicroStrategy becomes one of the biggest winners in the Bitcoin and crypto bull market
MicroStrategy Inc., a well-known name in enterprise software and a key player in the cryptocurrency market, has seen a significant jump in the value of its Bitcoin holdings. Recently, the price of Bitcoin exceeded $47,000, a significant increase that directly affected MicroStrategy’s investment portfolio.
As of January 9, 2024. MicroStrategy holds approximately 189,150 bitcoins, nearly 1% of the total bitcoins in circulation. The average price of these acquisitions stands at $31,168 per bitcoin, which amounts to about $5.895 billion. With the price of Bitcoin surpassing $47,000, the total market value of MicroStrategy’s Bitcoin assets reached about $8.89 billion, representing a profit of about $3 billion.
Founded in 1989, MicroStrategy has grown from its roots in database and business intelligence software to become a key player in the digital asset space. MicroStrategy’s journey into the Bitcoin landscape began in the summer of 2020 under the leadership of founder Michael Saylor, with a strategy focused on Bitcoin accumulation. This approach positions the company as the largest holder of bitcoins 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-hedged funds in the purchase of 21,454 Bitcoins. This initial investment, made at an average price of $11,882 per bitcoin, marks a key moment in MicroStrategy’s approach to treasury management, reflecting its confidence in bitcoin as a superior asset class compared to traditional cash.
However, the journey was not without its challenges. After the upswing in 2021, Bitcoin and other crypto assets experienced a significant price drop. In December 2022, amid market volatility following the FTX bankruptcy filing, MicroStrategy sold 704 bitcoins at an average price of $16,761. This strategic sale, a departure from the original buy-and-hold strategy, was made for tax purposes and was intended to generate tax relief by offsetting capital losses against previous gains. There were also rumors of MicroStrategy’s potential bankruptcy, in part because a significant portion of the funds used for bitcoin purchases were obtained through corporate loans.
The last bitcoin investment 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 approximately $42,110, amounting to a total investment of approximately $615.7 million.
Bitcoin buy and sell history list
August 11, 2020: 21,454 purchased BTC tan average price from $11,882.
September 14, 2020: Bought 16,796 BTC at an average price of $10,419.
December 4, 2020: Bought 2,574 BTC at an average price of $19,425.
December 21, 2020: Bought 29,646 BTC at an average price of $21,925.
January 22, 2021: Bought 314 BTC at an average price of $31,808.
February 2, 2021: Bought 295 BTC at an average price of $33,810.
February 24 – March 3, 2021: Bought 19,452 BTC at an average price of $52,765.
March 1, 2021: Bought 328 BTC at an average price of $45,732.
March 5, 2021: Bought 205 BTC at an average price of $48,888.
March 12, 2021: Bought 262 BTC at an average price of $57,146.
April 5, 2021: Bought 253 BTC at an average price of $59,289.
May 13, 2021: Bought 271 BTC at an average price of $55,387.
May 18, 2021: Bought 229 BTC at an average price of $43,663.
June 21, 2021: Bought 13,005 BTC at an average price of $37,617.
September 13, 2021: Bought 8,957 BTC at an average price of $44,945.
November 28, 2021: Bought 7,002 BTC at an average price of $59,187.
November 29 – December 8, 2021: Bought 1434 BTC at an average price of $57,477.
December 30, 2021: Bought 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: Bought 4,167 BTC at an average price of $45,714.
June 28, 2022: Bought 480 BTC at an average price of $20,817.
September 20, 2022: Bought 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: Bought 810 BTC at an average price of $16,790.
March 27, 2023: Bought 6,455 BTC at an average price of $28,016.
April 5, 2023: Bought 1,045 BTC at an average price of $28,016.
April 29 – June 27, 2023: Bought 12,333 BTC at an average price of $28,136.
July 1 – July 31, 2023: Bought 467 BTC at an average price of $30,835.
November 30, 2023: Bought 16,130 BTC at an average price of about $36,785
Conclusion
MicroStrategy’s strategic investment in Bitcoin has produced significant returns, particularly highlighted by the recent surge in Bitcoin’s value. This strategy not only benefited MicroStrategy, but also served as a catalyst for other companies to consider incorporating digital assets into their investment portfolios. Additionally, the broader market is watching events such as the potential approval of the Bitcoin Spot ETF with great interest. Such progress, if realized, could further enhance the adoption and integration of Bitcoin and other cryptocurrencies into mainstream financial strategies, indicating a significant shift in the investment landscape.
Image source: Shutterstock