MicroStrategy, as a result of Bitcoin’s bull run in price, now holds over $6 billion.
The CEO Michael Saylor, a fan of Bitcoin, celebrates his “accumulate and hold” strategic move on the social network Twitter.
Summary
MicroStrategy and the $6 billion in Bitcoin
The Nasdaq-listed software and intelligence company has integrated Bitcoin as its primary reserve since August 2020.
MicroStrategy reportedly held approximately 114,042 BTC as of September 12, acquired at an aggregate price of $3.16 billion and an average price of $27,713 per BTC, including commissions and fees.
This investment brought the company’s primary reserve to be worth about $6.7 billion, with the price of Bitcoin surpassing $60,000 on Friday, approaching all-time highs.
Michael Saylor, CEO of MicroStrategy, who has long shared his “devotion” to the crypto queen with multiple tweets, added the asset to the 4 fundamentals in nature:
Earth, Wind, Fire, Water, #Bitcoin.
— Michael Saylor⚡️ (@saylor) October 14, 2021
“Earth, Wind, Fire, Water, Bitcoin”.
Michael Saylor: “Bitcoin is Kingmaker”
Last week, Saylor reportedly spoke about Nigeria and Zimbabwe and the CBDC. In a video, Saylor is said to have suggested to the two countries that the only solution to fix the economy of each would be to issue currencies backed by Bitcoin.
In this regard, Saylor commented in the video as follows:
“You wanna fix your country like Nigeria, or Zimbabwe? The way you fix your country is you buy $2 billion, $3 billion worth of bitcoin and you issue currency backed by the bitcoin. That is the bitcoin standard. And every one of your citizens stops starving to death. And they live a decent life”.
Adding other examples involving Turkey (on the same level as Nigeria and Zimbabwe) and El Salvador, which has to some extent adopted his strategy, Saylor calls Bitcoin a Kingmaker.
MicroStrategy and Michael Saylor’s BTC bet
Saylor’s BTC bet, which has led the company he founded to now have over $6 billion in primary reserves, began in August 2020.
In fact, as of that day, MicroStrategy was the first Nasdaq-listed company to integrate BTC as a store of value. Followed by Tesla Inc, Square Inc and many others.
The first publicly disclosed purchase was of 21,454 BTC for a total of about $250 million, which occurred when Bitcoin was worth less than $10,000.
The gamble, and a strategy of accumulation and holding adopted by Saylor, seems to have paid off. As of July 2021, the amount of Bitcoin held by MicroStrategy was 105,000 BTC and the intention expressed by its founder was to continue with the accumulation.
Of course, not everyone at the software company thinks like Saylor. While the Bitcoin accumulation is taking place, CFO Phong LE and CTO Timothy Lang appear to have sold the company’s shares last August, exercising about 30% of the options they received as compensation.
In the middle of the summer, therefore, as the price of BTC was rising, each of them reportedly realized gains of about $7 million from the sale. Saylor, on the other hand, was not reported to have sold any assets.
