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MicroStrategy, the world's first and largest Bitcoin Treasury Company, continues to make waves in the financial world. In a recent tweet, Michael Saylor, co-founder and chairman of MicroStrategy, highlighted a staggering comparison: The company’s Bitcoin holdings, valued at approximately $26 billion, exceed the cash holdings of global corporate giants like IBM and Nike.
Since 2020, MicroStrategy has embarked on an aggressive Bitcoin accumulation strategy, positioning the cryptocurrency as its primary treasury reserve asset. As of Nov. 10, MicroStrategy holds nearly 279,420 Bitcoins acquired at an aggregate purchase price of $11.9 billion and an average purchase price of approximately $42,692 per Bitcoin, including fees and expenses.
Tomiwabold OlajideAccording to Bloomberg, this Bitcoin cache worth nearly $26 billion is larger than the cash and marketable securities of global industry heavyweights including International Business Machines Corp., Nike Inc. and Johnson & Johnson. Only roughly a dozen corporations, including Apple Inc. and Alphabet Inc., have more assets in their corporate treasuries.
MicroStrategy shares surge 2,500%
MicroStrategy's shares have increased by more than 2,500% as the value of Bitcoin has risen by over 700% since the middle of 2020, making it the best-performing U.S. major stock during the period. Bitcoin set a record of over $93,500 last Wednesday.
MicroStrategy created its performance metric, Bitcoin yield, which analyzes the percentage change in the ratio between its Bitcoin holdings and assumed diluted shares outstanding from one period to the next. The year-to-date yield is currently 26.4%.
Saylor chose to invest in Bitcoin in 2020 as a hedge against inflation as MicroStrategy's revenue growth slowed. The firm first made the purchases with cash from operations but has since turned to leveraging the funds from stock issuance and sale, as well as convertible debt sales, to leverage its purchasing power. It has now emerged as the largest publicly traded corporate holder of Bitcoin.
MicroStrategy is doubling down on its Bitcoin strategy, aiming to raise $42 billion over the next three years to buy more Bitcoin.
Yuri Molchan
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Dan Burgin
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