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MicroStrategy's Bitcoin Odyssey: 3 Years, 153K BTC

Martin Walker
Aug 20, 2023 at 12:48 pm

It's been a remarkable three-year journey since Michael Saylor's initial groundbreaking acquisition of bitcoin, and in this time span, the cryptocurrency holdings of MicroStrategy have swelled to an impressive nearly 153,000 BTC.

Michael Saylor, a visionary co-founder and executive chairman at MicroStrategy, who steered the company as its CEO for an incredible three decades, has steadfastly held onto his optimism for bitcoin even as these three years have passed since his publicly-traded business intelligence firm ventured into its maiden BTC purchase.

But it's not just optimism that characterizes Saylor's outlook; he has ventured into audacious forecasts concerning the valuation of this digital asset, entertaining the intriguing notion that its value could surge to surpass the remarkable milestone of $1 million per unit.

MicroStrategy's BTC Hoard Approaches 153,000 in its Third Anniversary

A pivotal chapter in the company's history was written on August 11, 2020, when MicroStrategy took the bold step of becoming the very first publicly-traded enterprise to invest in bitcoin. This strategic move had been hinted at in the preceding July, signaling the company's intention to allocate its resources into assets like gold or bitcoin, in lieu of maintaining substantial cash reserves. Ultimately, the decision crystallized into a $250 million bitcoin investment, with the cryptocurrency embraced as the primary treasury reserve asset.

Saylor's rationale at that crucial juncture, back when he occupied the mantle of MicroStrategy's CEO, was grounded in the belief that bitcoin held the potential as a more robust hedge against inflation and a source of superior returns on investment in comparison to other assets.

This inaugural bitcoin acquisition was the opening act for a series of subsequent investments, navigating the turbulent ebbs and flows of the cryptocurrency's value. The outcome has been the amassing of a substantial bitcoin reserve for the company. Midway through 2023, Saylor unveiled the acquisition of 12,333 BTC for $347 million, registering as one of the most substantial single-quarter investments since the second quarter of 2021.

As the calendar turned to July 31, 2023, MicroStrategy finds itself in possession of a substantial trove of 152,800 BTC, procured for a cumulative outlay of $4.53 billion, at an average unit cost of $29,672. This remarkable feat establishes the business intelligence software firm as the uncontested giant in the corporate realm of bitcoin holders.

However, a narrative twist emerged in a December 2022 SEC filing, revealing that MicroStrategy had parted with 704 BTC in a strategic maneuver aimed at reaping tax advantages. This development deviated from Saylor's earlier assertion, where he had unequivocally declared that the company would stand firm in retaining its entire bitcoin hoard.

Saylor's Unwavering Bitcoin Advocacy

Saylor has earned a reputation as a vocal and influential advocate for bitcoin, consistently positioning it as a superior alternative to gold, often highlighting its status as the "digital gold." It's worth noting that his stance on bitcoin has undergone a noticeable transformation, as evidenced by a 2013 tweet in which he had foreseen a dire fate for the asset, drawing parallels between its trajectory and that of online gambling.

However, the passage of time has seen Saylor's perception of bitcoin evolve dramatically. Not only has he spearheaded numerous bitcoin acquisitions on behalf of MicroStrategy, even extending to personal investments, but he has also boldly projected ambitious price milestones for this preeminent cryptocurrency.

In the blossoming month of May 2022, the distinguished executive chairman of MicroStrategy floated the notion that BTC could potentially attain valuation "in the millions," affirming its role as the currency shaping the future. Just a month later, Saylor went on record with a prediction that bitcoin's price could catapult to the noteworthy summit of $1 million.

Fast-forward to September 2022, Saylor pondered a prospective valuation of $500,000 for bitcoin in the coming decade, an estimate aligned with the current market capitalization of gold. By way of context, while BTC's market cap hovered at $572.3 billion, gold's market cap soared significantly higher, clocking in at an impressive estimated $12.8 trillion.

Moreover, Saylor has exhibited a seemingly impervious stance in the face of the ongoing regulatory crackdown on the cryptocurrency sector initiated by the US SEC. He contended that such regulatory actions, paradoxically, could propel bitcoin's value upwards and amplify its dominance within the market, potentially commanding an 80% share.

Transitioning from a celebrated 30-year tenure as MicroStrategy's CEO, Saylor embraced a new role as executive officer in August 2022. This shift positions him to direct a more focused energy towards the firm's "bitcoin acquisition strategy and related bitcoin advocacy initiatives." In this new era, the position of CEO has been assumed by MicroStrategy's president, Phong Le. This strategic restructuring aims to solidify the company's dedication to the ongoing journey that is intertwined with the fascinating evolution of bitcoin.

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