MicroStrategy, the largest corporate holder of BTC, weathered a challenging Bitcoin winter in 2022 and 2023, but recent developments signal a significant turnaround.
In January, MicroStrategy made another substantial purchase, bringing its total Bitcoin holdings to a staggering 190,000 BTC. This accumulation occurred over the past three and a half years, marking a remarkable journey for the NASDAQ-listed business intelligence software giant, which now sits on substantial (unrealized) profits after a period of struggle.
MicroStrategy’s journey into Bitcoin began in August 2020 when then-CEO Michael Saylor spearheaded the company’s first significant purchase of the cryptocurrency. Despite market fluctuations, including Bitcoin trading above $50,000 and dropping below $20,000, Saylor’s departure from the CEO role did not deter the firm from its Bitcoin acquisition strategy.
While the market crash in late 2022 and early 2023 impacted MicroStrategy’s finances, resulting in consecutive quarterly losses and significant BTC impairment charges, the company remained steadfast in its approach.
Despite these challenges, MicroStrategy continued to accumulate Bitcoin, culminating in its recent milestone of 190,000 BTC. With a dollar-cost-averaging (DCA) strategy, MicroStrategy’s average entry price for its BTC holdings stands at $31,464, representing an investment of nearly $6 billion.
With Bitcoin’s current price surpassing $47,300, MicroStrategy’s BTC stash is now valued at over $9 billion, representing a 50% increase. However, Saylor has reiterated the firm’s commitment to holding its BTC holdings, indicating that these profits may remain unrealized.
Examining MicroStrategy’s share price since its foray into Bitcoin reveals significant growth. Despite criticism, MicroStrategy’s stock price soared from around $125 in early August 2020 to over $1,000 within six months. Although the stock retraced during the crypto winter, it closed Friday’s trading session at $646, reflecting a more than 400% increase since implementing its Bitcoin-purchasing strategy.