MicroStrategy’s Michael Saylor is known for his unorthodox and daring investment style, which is often criticized. His Bitcoin-focused strategy and buying the best digital assets at near-highs has its fair share of critics. But recent developments tell us that Bitcoin’s bullish sentiment has been right after all, at least for today.
According to Bloomberg, MicroStrategy’s current stock $26 billion in BTC is now larger than the cash positions of Nike and IBM. Only a few top companies, led by Apple and Alphabet, have more assets in their treasuries.
The $26 billion in Bitcoin is a major milestone for MicroStrategy, which has adopted an aggressive Bitcoin-focused strategy under Michael Saylor, and for the crypto industry in general.
MicroStrategy’s Bitcoin-First Policy
Saylor, co-founder and chairman of MicroStrategy, began investing in Bitcoin in 2020 as an inflation hedge. During this time, the company’s revenues and growth stagnated and Saylor decided to invest in the leading digital asset.
MicroStrategy’s $26 billion #Bitcoin Cache is bigger than IBM and Nike Cash Holdingshttps://t.co/E5Q3bgDUsA
— Michael Saylor⚡️ (@saylor) November 16, 2024
The company used cash from its operations to buy BTC and then switched to using proceeds from stock sales and convertible debt sales to increase its purchasing power.
As most market experts criticized Saylor for his unconventional and risky venture, the financial gamble tended to pay off, ultimately catapulting MicroStrategy to the seat of the largest publicly traded entity with the most substantial holdings of the crypto.
BTCUSD trading at $90,251 on the 24-hour chart: TradingView.com
The Virginia-headquartered company now boasts of owning the largest BTC inventory in the cryptocurrency sector, beating other major players such as Riot Platforms and Marathon Digital.
According to Bloomberg data, MicroStrategy’s Bitcoin holdings are comparable to Exxon Mobil’s $26.9 billion in cash and marketable securities and Intel’s $26.6 billion, and approach General Motors’ assets at $32.2 billion.
MicroStrategy’s holdings grow as the price of BTC rises
MicroStrategy is one of the major publicly traded companies that rely significantly on BTC. Since the company adopted a Bitcoin-focused investment policy, its growth and revenues have been closely linked to the price of the asset.
However, Saylor’s aggressive strategy has some detractors. Some observers have warned others about the risks of crypto investing, with some seeing the strategy as an opportunity to capitalize on crypto’s bullish sentiment.
Image: Getty Images
For MicroStrategy, the Bitcoin bet has paid off. The company’s Bitcoin holdings purchased in August 2020 are already up 2,500%, and its aggressive investment strategy is not slowing down.
MicroStrategy to buy more BTCs
MicroStrategy plans to continue investing in Bitcoin and other crypto assets. The company has announced that it plans to expand its crypto portfolio by purchasing $42 billion over the next three years. The plan to buy more BTC reflects the company’s bullish approach to the long-term future of crypto and as an inflation hedge.
MicroStrategy’s success has prompted other companies to increase their investments in crypto. For example, Metaplanet has integrated BTC into its portfolio, following the example of MicroStrategy. MicroStrategy’s investment thesis has become a template for other companies looking to expand into crypto.
Featured image from Wikimedia Commons, chart from TradingView