Three years have passed since MicroStrategy (MRST), a U.S. business intelligence firm, invested in Bitcoin (BTC). Under the leadership of co-founder and then-CEO Michael Saylor, the company adopted a pioneering approach by designating Bitcoin as its main treasury reserve asset. On August 11th, 2020, the company procured 21,454 BTC at an approximate rate of $11,653 per coin, amounting to a $250 million investment. And the strategy paid off.
Throughout the subsequent fluctuating years, MicroStrategy remained steadfast in its commitment to Bitcoin, solidifying its position as the most prominent institutional Bitcoin holder. As of July 31st, the company’s Bitcoin portfolio comprises 152,800 BTC, purchased for an aggregate sum of $4.53 billion, averaging around $29,672 per Bitcoin. At the moment, Bitcoin’s market value stands at $29,391.
While Saylor held the position of CEO during MicroStrategy‘s inaugural Bitcoin acquisition, he transitioned to the role of executive chairman the following year, relinquishing his CEO duties. Since the day before its initial Bitcoin announcement on August 10th, 2020, MicroStrategy‘s stock (MSTR) has witnessed a surge of over 210%, with its current value being $384.31, as reported by MarketWatch.
However, the journey hasn’t been without its challenges. The MSTR share price experienced a decline of over 70% from its peak value of $1,315 on February 9th, 2021, coinciding with Bitcoin’s bullish trajectory. Additionally, in June 2022, there were speculations about MicroStrategy potentially facing a margin call on a loan secured against Bitcoin. Fortunately, such apprehensions remained unfounded. A margin call typically mandates traders or investors to contribute additional capital to prevent the termination or liquidation of a leveraged position.
Ultimately, however, it appears that MicroStrategy and Michael Saylor‘s Bitcoin strategy has paid off, especially in the high inflation environment of the past 18 months.
