MicroStrategy Becomes One of the Biggest 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 passed $47,000, a notable 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 cost of these acquisitions stands at $31,168 per Bitcoin, totaling around $5.895 billion. With Bitcoin’s price 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 transitioned 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 accumulating Bitcoin. This approach has 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 hedge funds in the purchase of 21,454 Bitcoins. This initial investment, made at an average price of $11,882 per Bitcoin, was 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 was not without its challenges. After the 2021 bull run, Bitcoin and other crypto-assets experienced a significant price drop. In December 2022, amid 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 his initial “buy and hold” strategy, was made for tax purposes and aimed to generate tax benefits by offsetting capital losses against past gains. There have also been 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 latest investment in 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 approximately $42,110, representing a total investment of approximately $615.7 million.
List of Bitcoin buy and sell history
August 11, 2020: 21,454 BTC bought at an average price of $11,882.
September 14, 2020: Bought 16,796 BTC at an average price of $10,419.
December 4, 2020: 2,574 BTC bought at an average price of $19,425.
December 21, 2020: 29,646 BTC bought at an average price of $21,925.
January 22, 2021: 314 BTC bought 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: 19,452 BTC bought at an average price of $52,765.
March 1, 2021: Bought 328 BTC at an average price of $45,732.
March 5, 2021: 205 BTC bought at an average price of $48,888.
March 12, 2021: Bought 262 BTC at an average price of $57,146.
April 5, 2021: 253 BTC bought at an average price of $59,289.
May 13, 2021: 271 BTC bought at an average price of $55,387.
May 18, 2021: Bought 229 BTC at an average price of $43,663.
June 21, 2021: 13,005 BTC bought at an average price of $37,617.
September 13, 2021: 8,957 BTC bought at an average price of $44,945.
November 28, 2021: 7,002 BTC bought at an average price of $59,187.
November 29 – December 8, 2021: 1,434 BTC bought at an average price of $57,477.
December 30, 2021: 1,914 BTC bought at an average price of $49,229.
January 1 – January 31, 2022: 660 BTC bought at an average price of $37,865.
February 15 – April 5, 2022: 4,167 BTC bought at an average price of $45,714.
June 28, 2022: Bought 480 BTC at an average price of $20,817.
September 20, 2022: 301 BTC bought at an average price of $19,851.
November 1 – December 21, 2022: 2,395 BTC bought at an average price of $17,871.
December 22, 2022: Sold 704 BTC at an average price of $16,761.
December 24, 2022: 810 BTC bought at an average price of $16,790.
March 27, 2023: 6,455 BTC bought at an average price of $28,016.
April 5, 2023: 1,045 BTC bought at an average price of $28,016.
April 29 – June 27, 2023: 12,333 BTC bought at an average price of $28,136.
July 1 – July 31, 2023: 467 BTC bought at an average price of $30,835.
November 30, 2023: 16,130 BTC bought at an average price of about $36,785
Closure
MicroStrategy’s strategic investment in Bitcoin has led to significant returns, particularly highlighted by the recent rise in Bitcoin’s value. This strategy has not only been beneficial to MicroStrategy, but has also served as a catalyst for other companies to consider incorporating digital assets into their investment portfolios. In addition, the broader market is observing developments such as the potential approval of a Bitcoin spot ETF with great interest. Such advances, if realized, could further enhance the adoption and integration of Bitcoin and other cryptocurrencies into mainstream financial strategies, signaling a significant shift in the investment landscape.
Image source: Shutterstock
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