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MicroStrategy (MSTR), a Nasdaq-listed enterprise software development company, has become the largest corporate holder of Bitcoin (BTC) under the leadership of its founder and chairman Michael Saylor.
Since August 2020, MicroStrategy has implemented a long-term investment plan to make Bitcoin its primary treasury reserve asset. The company has used excess cash flow and debt to accumulate Bitcoin holdings worth over $41 billion as of January 2025.
Key Takeaways
- MicroStrategy held 447,470 Bitcoins acquired at an average price of $62,503 per token as of January 5, 2025.
- The company has been acquiring Bitcoin using free cash flows, equity, and debt financing since August 2020.
- MSTR stock price has increased by over 2,300% since August 2020.
- Investors view MSTR as a leveraged play on Bitcoin due to the company’s use of debt to acquire Bitcoin.
- In October 2024, MSTR announced plans to raise $42 billion through equity and fixed-income instruments over the next three years to buy Bitcoin.
History of MicroStrategy’s Bitcoin Holdings
MicroStrategy’s co-founder Saylor did not always look eye to eye with Bitcoin. Saylor was once skeptical about Bitcoin. In 2013, he took to X (formerly Twitter) to declare that Bitcoin was doomed to fail.
By 2020, Saylor’s understanding of Bitcoin had completely changed, so much so that he pushed MicroStrategy to become the first publicly listed company to buy Bitcoin as a strategic reserve.
On July 28, 2020, MicroStrategy announced a capital allocation strategy to invest $250 million in alternative investment assets, such as gold and Bitcoin, with the potential to produce “higher returns than holding cash.”
On August 11, 2020, MicroStrategy announced that the company made its first Bitcoin investment, acquiring 21,454 BTC tokens.
“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” said MicroStrategy in a press release.
The initial 21,454 BTC tokens purchased for $250 million in August 2020 were worth about $2 billion as of January 9, 2024.
#Bitcoin days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling.
— Michael Saylor⚡️ (@saylor) December 19, 2013
Growth of MicroStrategy’s Bitcoin Holdings
As of January 5, 2025, MSTR’s Bitcoin holdings stood at 447,470 Bitcoins acquired at an average price of $62,503 per token.
The aggregate price of MicroStrategy’s Bitcoin holdings was reported to be $27.97 billion. The market value of MSTR’s BTC holdings was over $41.92 billion as of January 9, 2025, at a token price of $93,689.
Here is a table showing MicroStrategy’s Bitcoin purchase history since August 2020:
| Date of Purchase | Number of BTC Acquired | Buying Price |
|---|---|---|
| 2025 | ||
| January 6, 2025 | 1,070 | $101 million |
| 2024 | ||
| December 30, 2024 | 2,138 | $209 million |
| December 23, 2024 | 5,262 | $561 million |
| December 16, 2024 | 15,350 | $1.5 billion |
| December 9, 2024 | 21,550 | $2.1 billion |
| December 2, 2024 | 15,400 | $1.5 billion |
| November 25, 2024 | 55,000 | $5.4 billion |
| November 18, 2024 | 51,780 | $4.6 billion |
| November 11, 2024 | 27,200 | $2.03 billion |
| September 20, 2024 | 7,420 | $458.2 million |
| September 13, 2024 | 18,300 | $1.11 billion |
| July 2024 | 169 | $11.4 million |
| June 20, 2024 | 11,931 | $786 million |
| April 2024 | 122 | $7.8 million |
| March 19, 2024 | 9,245 | $623 million |
| March 11, 2024 | 12,000 | $821.7 million |
| February 26, 2024 | 3,000 | $155 million |
| January 2024 | 850 | $37.2 million |
| 2023 | ||
| December 27, 2023 | 14,620 | $615.7 million |
| November 30, 2023 | 16,130 | $593.3 million |
| November 2, 2023 | 155 | $5.3 million |
| September 25, 2023 | 5,445 | $147.3 million |
| July 2023 | 467 | $14.4 million |
| June 28, 2023 | 12,333 | $347 million |
| April 5, 2023 | 1,045 | $29.3 million |
| March 27, 2023 | 6,455 | $150 million |
| 2022 | ||
| December 28, 2022 | 2,500 | $4.03 billion |
| September 20, 2022 | 301 | $6 million |
| June 29, 2022 | 480 | $10 million |
| April 5, 2022 | 4,167 | $190.5 million |
| February 1, 2022 | 650 | $25 million |
| 2021 | ||
| December 30, 2021 | 1,914 | $94.2 million |
| December 9, 2021 | 1,434 | $82.4 million |
| November 29, 2021 | 7,002 | $414.4 million |
| September 13, 2021 | 5,050 | $242.9 million |
| August 24, 2021 | 3,907 | $177 million |
| June 21, 2021 | 13,005 | $489 million |
| May 18, 2021 | 229 | $10 million |
| May 13, 2021 | 271 | $15 million |
| April 5, 2021 | 253 | $15 million |
| March 12, 2021 | 262 | $15 million |
| March 5, 2021 | 205 | $10 million |
| March 1, 2021 | 328 | $15 million |
| February 24, 2021 | 19,452 | $1.026 billion |
| February 2, 2021 | 295 | $10 million |
| January 22, 2021 | 314 | $10 million |
| 2020 | ||
| December 21, 2020 | 29,646 | $650 million |
| December 4, 2020 | 2,574 | $50 million |
| September 14, 2020 | 16,796 | $425 million |
| August 11, 2020 | 21,454 | $250 million |
MicroStrategy & Bitcoin: Impact on MSTR’s Stock Price
In an interview at the BTC Prague 2024 conference, Saylor explained how implementing a long-term Bitcoin investment strategy has helped reverse the fortunes of MicroStrategy.
“The company was at the end of the line. We were going to have to sell the company. Its enterprise worth was $600 million. We were at our wits and we tried everything we could possibly do for a decade. It didn’t work. So finally we adopted the Bitcoin standard, and we quadrupled the stock price,” said Saylor.
Since MicroStrategy adopted the Bitcoin investment strategy in August 2020, MSTR stock price has increased over 2,300% from about $12.5 at the start of August 2020 to about $300 in early January 2025, TradingView data showed.
MicroStrategy’s market cap has ballooned from about $1.2 billion in August 2020 to over $81 billion making it the 222nd most valuable publicly-listed company in the world, as of January 9, 2024.
In December 2024, MSTR was included in the Nasdaq-100 Index, which is composed of the 100 largest non-financial companies listed on the Nasdaq stock market.
According to the company’s Q3 2024 report, MSTR stock has outperformed every S&P 500 company since the adoption of its Bitcoin strategy in August 2020. The MSTR is also more volatile than any other S&P 500 stock, said the report.
Market Reactions & Criticism
As MicroStrategy buys more Bitcoin every quarter using a mix of equity and debt financing, many investors view MSTR as a leveraged play on Bitcoin.
Crypto research firm IntoTheBlock was among the many market observers concerned about the broader implications of MicroStrategy’s use of leverage.
“MicroStrategy’s aggressive Bitcoin accumulation strategy, while profitable in the current market, exposes the company and its investors to financial risks that could unravel under adverse conditions, potentially having a very negative impact on BTC future price,” wrote IntoTheBlock in an emailed note on November 29, 2024.
The research firm added that MicroStrategy was “vulnerable to both Bitcoin price crashes and stock market downturns” as the company had over $7 billion in convertible notes, which must either be repaid or be converted to equity.
“If market conditions deteriorate and stock prices fall, bondholders may prefer cash repayment over conversion to equity, potentially forcing Bitcoin sales,” added IntoTheBlock.
Thoughts on MSTR Liquidation Risk:
The only liquidation risk I can see is via their convertible debt offerings:
1) If convertible debt buyers do not convert to shares before maturity, it forces MSTR to sell BTC to reimburse debt holders.
2) This would happen if MSTR doesn't… pic.twitter.com/GFIOeAqQPL
— Willy Woo (@woonomic) November 27, 2024
Future Plans
MicroStrategy is doubling down on its leveraged Bitcoin acquisition strategy. In October 2024, the company announced plans to raise $42 billion through equity and fixed-income instruments over the next three years to buy Bitcoin.
In early January 2025, MicroStrategy commenced its capital-raising plans by offering perpetual preferred stock worth up to $2 billion to the public.
The company added that the perpetual preferred stock may include features such as convertibility to our class A common stock, payment of cash dividends, and provisions allowing for redemptions of shares.
Over time, Saylor plans to make MicroStrategy a “Bitcoin bank” or a “Bitcoin finance company.”
Our Q3 2024 $MSTR investor presentation includes an elaborate discussion of @MicroStrategy's $42 Billion Capital Plan, #Bitcoin Treasury Company outlook, and BTC Principles. pic.twitter.com/MRfbr7duE1
— Michael Saylor⚡️ (@saylor) October 31, 2024
The Bottom Line
Saylor and MicroStrategy are leaning heavily on Bitcoin adoption for survival and success. They have gone all-in on their Bitcoin bet and in doing so have exposed crypto investors to operational risks at MicroStrategy.
On a positive note, Saylor’s conviction has influenced the masses to believe in Bitcoin. The $27.97 billion pumped into the Bitcoin market by MicroStrategy since August 2020 has certainly helped BTC scale multiple all-time highs along the way.
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References
- MicroStrategy Announces Second Quarter 2020 Financial Results (Sec)
- Michael Saylor⚡️ on X (X)
- Capital VS Currency – Michael Saylor (BTC Prague 2024) – YouTube (Youtube)
- MicroStrategy (MSTR) – Market capitalization (Companiesmarketcap)
- Annual Changes to the Nasdaq-100 Index® (Globenewswire)
- MicroStrategy – Q3 2024 Financial Results (Assets.contentstack)
- Willy Woo on X (X)
- MicroStrategy Announces Third Quarter 2024 Financial Results and Announces $42 Billion Capital Plan (Microstrategy)
- MicroStrategy eyes trillion-dollar valuation in bitcoin bank endgame, Michael Saylor tells Bernstein | The Block (Theblock)
- Michael Saylor⚡️ on X (X)
