Recent market developments have remarkably favored Michael Saylor, MicroStrategy’s co-founder, boosting his net worth by an estimated $700 million due to a rapid rise in both the company’s stock and Bitcoin values.
MicroStrategy’s strategic decision to acquire an additional 3,000 BTC, raising its Bitcoin portfolio to 193,000 BTC, has paid off significantly.
Surge in MicroStrategy’s Market Value
Linked closely to its extensive Bitcoin investments, MicroStrategy’s stock witnessed a 10% increase on Wednesday alone, contributing to a 40% overall growth within just three days.
Owning a 12% equity stake in MicroStrategy and holding 17,732 Bitcoins personally, Saylor’s financial position improved dramatically, with his investments’ total worth escalating from $2.27 billion to $2.96 billion from Sunday to Wednesday.
Since founding MicroStrategy in 1989, Saylor has become a leading Bitcoin proponent, even co-authoring a book titled “What is Money?” that explores cryptocurrency in 2023.
MicroStrategy’s Bitcoin-Focused Investment Strategy
Initiated in 2020 under Saylor’s leadership, MicroStrategy’s Bitcoin-focused strategy aimed at inflation hedging and cash reserve diversification. Despite facing unrealized losses when Bitcoin prices dipped below $30,000 during the crypto winter, the firm, under Saylor’s guidance, continued to increase its Bitcoin reserves instead of selling.
Saylor has declared that selling Bitcoin is not in MicroStrategy’s future plans, presenting Bitcoin as the company’s exit strategy. During a recent earnings call, CFO Andrew Kang pointed out MicroStrategy’s position as the foremost corporate Bitcoin holder.
Bitcoin’s Surge Drives Saylor’s Wealth Increase
The primary driver behind this week’s wealth surge was Bitcoin’s price jump to its highest since November 2021, reaching about $64,000 on Wednesday before a slight pullback. This rally was largely fueled by the launch and performance of spot Bitcoin ETFs, which now hold more Bitcoin than MicroStrategy itself. Bloomberg’s Eric Balchunas highlighted the trading volume of these ETFs, which hit a record high of $2.4 billion on February 26, with BlackRock’s iShares Bitcoin ETF (IBIT) notably breaking its trading volume record with $1.3 billion on February 27.