MicroStrategy’s Bitcoin Investment Surges Over 210% in Three Years, Crossing $4.5 Billion in BTC and Company Stock

Reflecting on a transformative decision made three years ago, MicroStrategy, a powerhouse in the realm of business intelligence, continues to make waves with its pioneering approach to Bitcoin (BTC) investment.

In August 11th, 2020, under the visionary guidance of Michael Saylor, MicroStrategy embarked on a strategic endeavor that would redefine the company’s financial landscape. Saylor’s brainchild was to position Bitcoin as MicroStrategy’s foremost treasury reserve asset. This marked the genesis of a journey that would see the acquisition of 21,454 BTC, valued at $250 million, with an average price per Bitcoin of approximately $11,653.

Since then, MicroStrategy has remained unwavering in its commitment to the cryptocurrency market’s leader. Overcoming the undulating tides of market fluctuations, the company has emerged as the leading institutional holder of Bitcoin. As of July 31st, their treasury boasts an impressive 152,800 BTC, secured at a cumulative expense of $4.53 billion, with an average individual price of $29,672. At the time of writing, Bitcoin is valued at $29,391.

While Saylor was at the helm of MicroStrategy when the initial Bitcoin acquisition occurred, he has since transitioned to the role of Executive Chairman, passing the CEO baton to a new leader last year.

MicroStrategy’s stock (MSTR) has journeyed a parallel trajectory, surging by more than 210% since August 10th, 2020 – the day preceding the groundbreaking Bitcoin purchase announcement. At present, MSTR stands at $384.31, according to MarketWatch. However, this path has been far from linear; MSTR has faced its share of challenges. Following its pinnacle of $1,315 on February 9th, 2021, during Bitcoin’s remarkable bull run, the stock has witnessed a decline of over 70%.

Navigating the intricate financial landscape, MicroStrategy encountered a moment of scrutiny in June 2022 amid concerns of a potential margin call on a Bitcoin-backed loan. Despite the apprehensions, these concerns ultimately proved unfounded.

A margin call is a critical juncture wherein a trader or investor is prompted to infuse additional funds to stave off the closure or liquidation of a leveraged position. In the face of these challenges, MicroStrategy’s commitment to its groundbreaking Bitcoin investment remains steadfast, underscoring its role as a trailblazer in reshaping the financial landscape for years to come.

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