One of the most notable investments in Bitcoin last year came from MicroStrategy, a business intelligence company traded with NASDAQ.
Led by the company’s CEO and Bitcoin bull Michael Saylor, MicroStrategy purchased over $ 1.3 billion in BTC. Also, this $ 1.3 billion does not include BTC that Saylor personally owns.
Since MicroStrategy’s first acquisition of Bitcoin, it has not only made $ 1 billion in unrealized profits, but its shares have gained over 200 percent in five months.
MicroStrategy’s Bitcoin Journey
Michael Saylor was initially skeptical of Bitcoin, but things moved quickly when he changed his mind. The major factor contributing to Saylor’s change was the ongoing inflation facing the US dollar. The US printed about 35 percent of all dollars ever created, in 2020 alone; This amount is a surprising and scary amount for anyone who stores most of his wealth in US dollars. With ongoing economic uncertainty due to the global epidemic and rising inflation, Saylor decided it would be safer to convert some of MicroStrategy’s treasury reserves to Bitcoin.
Since this initial transaction, Saylor has become one of the foremost proponents of Bitcoin in the industry. He even said he thought Bitcoin would one day surpass the market value of gold.
MicroStrategy has purchased over $ 1 billion of Bitcoins at different prices through different funding methods. In its latest acquisition, MicroStrategy raised $ 650 million in a debt supply and used the proceeds to purchase more BTC on behalf of treasury reserves.
When we look at the MicroStrategy (MSTR) price chart from year to date, we can see that the price has been moving in a relatively straight line all year long while hovering in the $ 150 range. As of November, when Saylor started buying Bitcoin for MicroStrategy, the stock price also started to rise. The stock price rose above $ 340 at the end of November and then dropped to $ 280. The price decline did not take long as the MSTR was recovering rapidly and is currently only $ 10 away from breaking the $ 400 level.